Multiple Choice
Wyatt Borke purchased an automobile with a list price of $5,580. He signed a contract requiring a $1,000 down payment and $1,000 payments at the beginning of each subsequent year for five years. Compute the annual implicit (effective) rate of interest on this financing loan.
A) 2%
B) 3%
C) 4%
D) 5%
Correct Answer:
Verified
Correct Answer:
Verified
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