Excellent bank has offered you $40,000, 30-year loan to purchase an equipment in your Factory. The loan payments are to be made on monthly basis. If the total payment at the end of the thirty-year period is $134964.00. Determine the effective annual interest rate if the interest is compounded monthly

Excellent bank has offered you $40,000, 30-year loan to purchase an equipment in your Factory. The loan payments are to be made on monthly basis. If the total payment at the end of the thirty-year period is $134964.00. Determine the effective annual interest rate if the interest is compounded monthly

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 12P

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