12- The cash price of a machine tool is $3500.00. The seller is willing to accept a $1000.00 down

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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12- The cash price of a machine tool is $3500.00. The seller is willing to accept a $1000.00 down payment and 24 end-of-month monthly payments of $110.80 each. What is the effective interest rate offered by the seller?

  1. a)  4%

  2. b)  5.51%

  3. c)  3.10%

  4. d)  6.17%

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