The Magic Pumpkin Limousine Company wants to purchase a car telephone system for one of its…


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The Magic Pumpkin Limousine Company wants to purchase a car telephone system for one of its… 1 answer below » The Magic Pumpkin Limousine Company wants to purchase a car telephone system for one of its automobiles. The telephone vendor has offered to finance the $1,500 purchase over one year in 12 installments, with a total of $140 in interest to be paid on the loan. Magic Pumpkin’s bank has offered to finance the purchase with an installment loan, where $155 in interest will be repaid and payments on the loan must be made quarterly. What are the effective interest rates on these loans? Additional Requirements Other Requirements: Company wants to purchase a car telephone system. Vendor has offered View complete question » The Magic Pumpkin Limousine Company wants to purchase a car telephone system for one of its automobiles. The telephone vendor has offered to finance the $1,500 purchase over one year in 12 installments, with a total of $140 in interest to be paid on the loan. Magic Pumpkin’s bank has offered to finance the purchase with an installment loan, where $155 in interest will be repaid and payments on the loan must be made quarterly. What are the effective interest rates on these loans? Additional Requirements Other Requirements: Company wants to purchase a car telephone system. Vendor has offered to finance the $1,500 purchase over one year I 12 installments, with a total of $140 in interest to be paid on the loan. Company’s bank has offered to finance the purchase with an installment loan, where $155 in interest will be repaid and payments on the loan must be made quarterly. What are the effective interest rates on these loans? View less » Sep 07 2015 12:50 PM

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