Calculator Problem – 07/02/2012

You add an extended warranty that costs $2016 to a six year car loan at a zero percent interest rate.  If you can make 10% on your money, what is the effective cost for the warranty?

(The answer will be posted with the new calculator problem in 2 weeks. Or if you can’t wait that long, you can go to http://www.facebook.com/pages/Gary-Johnston-Seminars/111368472221424 for the answer.)

Answer to 06/18/2012 problem:

(N=10,PV= -511.59,PMT=61.29,FV=0) I=41.13%