S
Scheh
Guest
You plan to purchase a car. The dealer is offering special financing at 8 percent for 100 percent of the car value. The inflation premium is 3.5 percent. If the pure rate in the market is 3 percent, what is the risk premium using the multiplicative form?
a. 7.48%
b. 6.24%
c. 2.69%
d. 1.31%
a. 7.48%
b. 6.24%
c. 2.69%
d. 1.31%