The Magic Pumpkin Limousine Company wants to purchase a car telephone system
Question # 00091542
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Updated on: 08/12/2015 02:57 PM Due on: 09/11/2015
The Magic Pumpkin Limousine Company wants to purchase a car telephone system for one of its automobiles. The telephone vendor has offered to finance the $1,500 purchase over one year in 12 installments, with a total of $140 in interest to be paid on the loan. Magic Pumpkin's bank has offered to finance the purchase with an installment loan, where $155 in interest will be repaid and payments on the loan must be made quarterly. What are the effective interest rates on these loans?
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Rating:
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Solution: The Magic Pumpkin Limousine Company wants to purchase a car telephone system