8- Suppose that you obtain a loan from a bank. The loan amount is 60.000 TL and has a 5 years maturity. You have to pay monthly installments and the annual interest rate is determined as 20%. Then, you put the 50.00O TL of the loan amount into a term deposit account on a monthly basis for 5 years, so that you pay your installments with the interest earned. To achieve an exact match between installments and interest income, what should be the annual interest rate on the term deposit? 38,15% 29,08% O 34,23% 25,19%

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
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8- Suppose that you obtain a loan froma bank. The loan amount is 60.000 TL and
has a 5 years maturity. You have to pay monthly installments and the annual
interest rate is determined as 20%. Then, you put the 50.000 TL of the loan
amount into a term deposit account on a monthly basis for 5 years, so that you
pay your installments with the interest earned. To achieve an exact match
between installments and interest income, what should be the annual interest
rate on the term deposit?
38,15%
29,08%
34,23%
O 25,19%
Transcribed Image Text:8- Suppose that you obtain a loan froma bank. The loan amount is 60.000 TL and has a 5 years maturity. You have to pay monthly installments and the annual interest rate is determined as 20%. Then, you put the 50.000 TL of the loan amount into a term deposit account on a monthly basis for 5 years, so that you pay your installments with the interest earned. To achieve an exact match between installments and interest income, what should be the annual interest rate on the term deposit? 38,15% 29,08% 34,23% O 25,19%
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