You plan to purchase a car the dealer is offering special, Microeconomics

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You plan to purchase a car the dealer is offering special

You plan to purchase a car. The dealer is offering special financing at an annual percentage rate (APR) of 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?

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Microeconomics: You plan to purchase a car the dealer is offering special

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Microeconomics: You plan to purchase a car the dealer is offering special

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