(Q. 7 IN B) YOUR BROTHER BET THE TORONTO MAPLE LEAFS WOULD WIN THEI...

2. (Q. 7 in B) Your brother bet the Toronto Maple Leafs would win their 2007 home opener and is now trying to pay off a gambling debt of $3,000. You have agreed to pay off the debt for him today, and in return he has agreed to pay you $125 per month over the next three years with payments beginning immediately. What is the effective annual interest rate you are charging him? A) 25.14% B) 32.61% C) 35.15% D) 42.24% Solution C