Spectrum borrowed $4 million for new fiber optic cable and repaid the loan in amounts of $400,000 in years 1 and 2 and a lump-sum amount of $4.2 million at the end of year 3. What was the interest rate on the loan? a) 10.00% b) 8.47% c) 13.50% d) 12.10%

Spectrum borrowed $4 million for new fiber optic cable and repaid the loan in amounts of $400,000 in years 1 and 2 and a lump-sum amount of $4.2 million at the end of year 3. What was the interest rate on the loan? a) 10.00% b) 8.47% c) 13.50% d) 12.10%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 9P

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