Given this is the situation, how should I be calculating the APR for each form of debt? It is assumed that these are monthly compounding. I am bit unclear with the question though. Should I be calculating the compound interest rate for each debt, using the repayment amount, and then

Given this is the situation, how should I be calculating the APR for each form of debt? It is assumed that these are monthly compounding. I am bit unclear with the question though. Should I be calculating the compound interest rate for each debt, using the repayment amount, and then

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter11: Notes, Bonds, And Leases

Section: Chapter Questions

Problem 3Q

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Question

Given this is the situation, how should I be
calculating the APR for each form of debt? It is
assumed that these are monthly compounding.
I am bit unclear with the question though. Should I
be calculating the compound interest rate for each
debt, using the repayment amount, and then
calculate their APR?
If so, what equation should I be using to calculate
the compound interest rate?

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