Answered: Calculate the effective annual interest…

Business

Finance

Calculate the effective annual interest rate being charged for the loan.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 41P

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Question

You need to borrow $15,000. You bank offers you a loan that you have to pay back $500 at the end of each quarter for total 40 quarter (total 10 years). Calculate the effective annual interest rate being charged for the loan.

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