o buy equipment ; current price of it is ( $ 50,000 ) . So , he requested the help of a bank , the bank agreed to help the contractor . The bank bought him the equipment he need , and sold it to him at a price of ( $ 66,000 ) , to be paid after five years from now . What interest
o buy equipment ; current price of it is ( $ 50,000 ) . So , he requested the help of a bank , the bank agreed to help the contractor . The bank bought him the equipment he need , and sold it to him at a price of ( $ 66,000 ) , to be paid after five years from now . What interest
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A contractor wanted to buy equipment ; current price of it is ( $ 50,000 ) . So , he requested the help of a bank , the bank agreed to help the contractor . The bank bought him the equipment he need , and sold it to him at a price of ( $ 66,000 ) , to be paid after five years from now . What interest rate the bank is
Transcribed Image Text:2. A contractor wanted to buy equipment; current price of it is ($50,000). So,
he requested the help of a bank, the bank agreed to help the contractor. The
bank bought him the equipment he need, and sold it to him at a price of
($66,000), to be paid after five years from now. What interest rate the bank is
based on?
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