[SPLIT] Rentown advertised a computer system...

dmillionaire

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i have one more question if you see this and want to help out, i have 0 idea how to do this one lol

Rentown advertised a computer system at a cash price of $3598 and at a rent-to-own rate of $290 at the beginning of each month for 24 months. What effective rate of interest is a customer paying to acquire the computer in a rent-to-own transaction?

The effective rate is %.
 
need little help on this question

i keep coming back to this question completely stumped i cant seem to find an equation for this one if anyone could help me out or start me off that be amazing thank you!

Rentown advertised a computer system at a cash price of $3598 and at a rent-to-own rate of $290 at the beginning of each month for 24 months. What effective rate of interest is a customer paying to acquire the computer in a rent-to-own transaction?

The effective rate is %.
 
i keep coming back to this question completely stumped i cant seem to find an equation for this one if anyone could help me out or start me off that be amazing thank you!

Rentown advertised a computer system at a cash price of $3598 and at a rent-to-own rate of $290 at the beginning of each month for 24 months. What effective rate of interest is a customer paying to acquire the computer in a rent-to-own transaction?

The effective rate is %.

The price is $3598 if you buy it now.

If you rent to own it, it will cost you $290 x 24 = $6960.

Renting to own it you pay it all back in 24 months or 2 years.

So treat this as a loan. You borrow $3598 at an interest rate such that paying it off in 2 yrs costs $6960 or
$(6960-3598) in interest over 2 yrs. Based on the other problems you've had today you can solve this.
 
The formula for loan payment calculation is P = A*i / [1 - 1/(1 + i)^n]
Here, you are given P=290, A=3598 and n=24.
Calculation of i is NOT POSSIBLE directly: numeric method required.

Have a look(s):
https://www.google.ca/?gws_rd=cr&ei=zDiXUrz-NtHioATB4IKYDQ#q=numerical+methods

With your problem, the rate will be >6% and <7% ...that's MONTHLY!
So approximately 78% annually.

Where did you get this problem? Classroom? On-line?

oooo ok amazing! i just woke up bout to eat breakfast and try this out i got this from school its a bunch of questions to prepare for the test. but my teacher teaches it the most foreign way to me. no formulas just how to punch it in a specific calculator using the p/y N and enter buttons its really messed up how she teaches
 
Denis said "Calculation of i is NOT POSSIBLE directly: numeric method required."

He didn't isolate "i".
 
i have one more question if you see this and want to help out, i have 0 idea how to do this one lol

Rentown advertised a computer system at a cash price of $3598 and at a rent-to-own rate of $290 at the beginning of each month for 24 months. What effective rate of interest is a customer paying to acquire the computer in a rent-to-own transaction?
The effective rate is %.
What is the total being paid?

What was the (unfinanced, "shelf") price?

What then is the amount being paid (extra) for the financing?

Given that this is a two-year contract, what then is the interest rate?

If you get stuck, please reply with a clear listing of how far you got in working through the above steps. Thank you! ;)
 
Huh?
WHAT is it you're presently learning: how to use a financial calculator?
If so, from where are you getting the formulas you're posting now and then?

You have this problem where numeric methods are required, but are not sure
of a simple future value calculation; like trying to ride a motorcycle but not
sure about a tricycle: seems to be something wrong somewhere...

Just concerned...you seem to be a good kid trying hard...

haha, it is basically how to use a financial calculator, its just business math, its the faster version and when i asked her to teach the formulas she said this is the 2 hour class not 3 hour i have no time to teach the formulas ... so i'm stuck learning the formulas my self from here and in the book, the percentage questions i cant figure out though.

this is another question i'm not to sure about.

What semiannually compounded rate and effective rate of interest are being charged on a $12,000 loan if semiannual payments of $1,204.55 will repay the loan in seven years? (Round your answers to two decimal places.)

j=

f=
 
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