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Your annual auto insurance premium is due instead of paying

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Your annual auto insurance premium is due. Instead of paying the whole amount of $1,000 all at once today, you choose to go with the insurer's financing plan that allows you to make 4 quarterly payments of $275 each, with the first payment due today. If you choose this plan, what is the implied interest rate you're paying on this financing plan?

Reference no: EM13622872

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