Ross has a $67,000 in an interest bearing account. From this account, Ross is intending to pay the $5,000 monthly payment on his 2019 Porsche 911 GT2 RS (PDK) RWD Coupe. Ross wants to take care of 20 monthly payments, with the money in this account - What is the required rate of return Ross must earn if he is to be able to fully make the 20 payments?
A). 4.16%
B). 5.03%
C). 4.68%
D). 7.32%
PMT =5000
PV =67000
Months =20
RATE using excel function =RATE(20,5000,-67000) =4.16%
Option a is correct option
Ross has a $67,000 in an interest bearing account. From this account, Ross is intending to...