A lease-to-own store offers a 55” Samsung 4k UHD TV for $69.99 per month for 24...
A lease-to-own store offers a 55” Samsung 4k UHD TV for $69.99 per month for 24 months. An identical TV was priced at $499.99 on the Samsung website. What is the implied annual interest rate of the lease-to-own offer?
Homework Answers
Information provided:
‘Present value= $499.99
Monthly cost= $69.99
Time= 24 months
The implied annual interest rate is computed by entering the below in a financial calculator:
PV= -499.99
PMT= 69.99
N= 24
The value obtained is 13.2990.
Therefore, the implied annual rate is 13.2990/12= 1.1083% .
In case of any query, kindly comment on the solution
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A lease-to-own store offers a 55” Samsung 4k UHD TV for $69.99
per month for 24...
A lease-to-own store offers a 55” Samsung 4k UHD TV for $69.99 per month for 24...
A lease-to-own store offers a 55” Samsung 4k UHD TV for $69.99 per month for 24 months. An identical TV was priced at $499.99 on the Samsung website. What is the implied annual interest rate of the lease-to-own offer?
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