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Find effective annual opportunity cost of paying monthly

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Reference no: EM132593671

Question 1: Mooncorp Insurance has quoted you an annual premium to insure your car of $2400. You are offered a 15% discount if you pay the lump sum immediately. You can also pay the account by making 12 equal end of month payments of $200. The effective annual opportunity cost of paying monthly as a percentage to two decimal places is? (Accurate to one basis point.)

Reference no: EM132593671

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