You purchase a dishwasher for $1261.60 plus 7% sales tax. The appliance store offers an installment loan that allows you to pay for the dishwasher by making 12 equal monthly payments of $123.74 What is the cost of credit, in dollars, for this loan? Round your answer to the nearest cent

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Subject: accounting 

You purchase a dishwasher for $1261.60 plus 7% sales tax. The appliance store offers an installment loan that allows you to pay for the dishwasher by making 12 equal
monthly payments of $123.74. What is the cost of credit, in dollars, for this loan? Round your answer to the nearest cent
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Transcribed Image Text:You purchase a dishwasher for $1261.60 plus 7% sales tax. The appliance store offers an installment loan that allows you to pay for the dishwasher by making 12 equal monthly payments of $123.74. What is the cost of credit, in dollars, for this loan? Round your answer to the nearest cent For the toolbar press ALT+F10 (PC) or ALT+FN+F10 (Mac). BTUS Paragraph Arial 10pt v 2 V I. ***
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