Determine what annual rate of interest geico is charging

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An insurance policy from GEICO has an up-front charge of $722.10 for 6 months' coverage, or one can choose from several payment plans including a monthly plan described below.

If one chooses the monthly plan, he/she is borrowing from GEICO. Use the IRR function to determine what annual rate of interest (APR) GEICO is charging.

Hint: Let time zero be one month before coverage starts.

An insurance policy from GEICO has an up-front charge of $722.10 for 6 months' coverage, or one can choose from several payment plans including a monthly plan described below.

If one chooses the monthly plan, he/she is borrowing from GEICO. Use the IRR function to determine what annual rate of interest (APR) GEICO is charging.

Hint: Let time zero be one month before coverage starts.

$722.10 OR the monthly payment plan including:

1 month before the start of coverage $125.00 at the start of coverage $124.00

1 month after the start of coverage $124.00

2 months after the start of coverage $124.00

3 months after the start of coverage $125.00

4 months after the start of coverage $124.10

Reference no: EM131928049

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