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Honest Eds Used Cars offers the following deal. You can pay $20,000 cash for a...

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Finance

Honest Eds Used Cars offers the following deal. You can pay $20,000 cash for a 2006 Lexus IS 300 and drive it off the lot. Alternatively, you could make a $4,000 down payment right now and then pay $700 at the end of each month for the next two years (i.e., 24 payments of $700 with the first payment due one month from today). What is the EAR implied in the second payment option?

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