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In the past, a car manufacturer advertised 0% financing on many of its models. For example, a particular model had a cash price of $13174.09. However, if you elected to buy the car under the 0% financing deal, then the manufacturer used a price of $15408. If you chose a 48-month term, then the manufacturer calculated your monthly loan payments using the 0% financing price instead of the cash price ($321 per month). In the fine print, the manufacturer was legally obliged to disclose the effective annual rate that it charged for the loan. What rate did the manufacturer disclose? The disclosed effective annual rate was (Round to two decimal places as needed.)
Read about the Enron Corporation fraud and answer the following questions:
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When you noted that we as leaders must inspire, where do you think this inspiration is derived from, the team or leader? Explain
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