Problemyour childs orthodontist offers you two alternative, Ask an Expert

Accounting

Problem:

Your child's orthodontist offers you two alternative payment plans. The first plan requires a $4,000 immediate up-front payment. The second plan requires you to make monthly payments of $137.41, payable at the end of each month for 3 years.

Required:

Question: What nominal annual interest rate is built into the monthly payment plan?

Note: Please show how to work it out.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91170763

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