mountain bike can be purchased for $1000 cash. It may also be purchased for 12 monthly payments of $100.00. a. calculate the dollar cost of credit b. use the formula I= 2yc/p(n+1) x 100% to calculate the annual percentage of interest

mountain bike can be purchased for $1000 cash. It may also be purchased for 12 monthly payments of $100.00. a. calculate the dollar cost of credit b. use the formula I= 2yc/p(n+1) x 100% to calculate the annual percentage of interest

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

mountain bike can be purchased for $1000 cash. It may also be purchased for 12 monthly payments of $100.00.

a. calculate the dollar cost of credit

b. use the formula I= 2yc/p(n+1) x 100% to calculate the annual percentage of interest

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