You need to borrow $2,000 quickly, and the local pawn shop will give it to you if you promise to repay them $200.92 monthly over the next year.

From the pawn shop's viewpoint, what is the IRR of this transaction?
A) 1.0% per month
B) 1.7% per month
C) 2.0% per month
D) 2.5% per month
E) 3.0% per month

Question

You need to borrow $2,000 quickly, and the local pawn shop will give it to you if you promise to repay them $200.92 monthly over the next year.

From the pawn shop's viewpoint, what is the IRR of this transaction?
A) 1.0% per month
B) 1.7% per month
C) 2.0% per month
D) 2.5% per month
E) 3.0% per month

Quizplus · Accepted Answer

The Answer of You need to borrow $2,000 quickly, and the local pawn shop will give it to you if you promise to repay them $200.92 monthly over the next year.

From the pawn shop's viewpoint, what is the IRR of this transaction?
A) 1.0% per month
B) 1.7% per month
C) 2.0% per month
D) 2.5% per month
E) 3.0% per month

You Need to Borrow $2,000 Quickly, and the Local Pawn