A new engineering graduate who started a business borrowed money for 1 year. The amount of the loan was 23,800 JD, and it had an interest rate of 10% per year. However, the bank made him buy a loan insurance that cost 5% of the loan amount. In addition, the bank charged a loan setup fee of 300 JD. What was the effective interest rate paid?

A new engineering graduate who started a business borrowed money for 1 year. The amount of the loan was 23,800 JD, and it had an interest rate of 10% per year. However, the bank made him buy a loan insurance that cost 5% of the loan amount. In addition, the bank charged a loan setup fee of 300 JD. What was the effective interest rate paid?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 68P

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