A goods of price $1,000 can be bought by the following modes:
1/ In cash with a discount of 2.3%
2/ By three prmissory notes of the same face value of $338. The first paid in 3 months, the second in 4 months and the last in 5 months.
3/ By 10 monthly payments of $107, the first is paid in 2 months
This shop uses the monthly interest rate of 1.4%
Which mode do you prefer? Calculate the effective rate of each mode.
I am having problem with this so please help me. Thank you in advance guys
1/ In cash with a discount of 2.3%
2/ By three prmissory notes of the same face value of $338. The first paid in 3 months, the second in 4 months and the last in 5 months.
3/ By 10 monthly payments of $107, the first is paid in 2 months
This shop uses the monthly interest rate of 1.4%
Which mode do you prefer? Calculate the effective rate of each mode.
I am having problem with this so please help me. Thank you in advance guys