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Hillier Hillier
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Posts: 550
Rep: 5 0
6 years ago
A lease agreement valued at $15 000.00 requires payment of $900.00 at the beginning of every quarter for five years. What is the nominal rate of interest charged (compounded quarterly)?
Textbook 
Contemporary Business Mathematics with Canadian Applications

Contemporary Business Mathematics with Canadian Applications


Edition: 11th
Authors:
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wrote...
6 years ago
PV = 15 000.00; n = 5(4) = 20; PMT = 900.00; P/Y = C/Y = 4

Programmed solution:

The nominal rate of interest is 8.03% (approx.) p.a. compounded quarterly.
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