What should be the per-annum interest rate that the bank


A BMW dealership is charging a financing rate of 3.50% APR on its M3 car. The payments are to be made bi-weekly (i.e., every two weeks). Alternatively, you can get a loan from a bank to buy the car. The bank asks you to pay interest every 6 months. What should be the per-annum interest rate that the bank should charge so that it is equivalent to the dealership financing option?

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Finance Basics: What should be the per-annum interest rate that the bank
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