A loan of £5,000 is to be repaid by level monthly instalments inarrear over a period of five years,the flat rate of interest forthis transaction being 4.7% per annum. APR of the transactionisSelect one:a. 7.13%b. 9.54%C. 6.45%d. 5.16%e. 8.9%

APR is annual percentage rate that effective annual interest rate.

Answered: this transaction being 4.7% per annum.…

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this transaction being 4.7% per annum. APR is Select one: a. 7.13% O b. 9.54% C. 6.45% d. 5.16% e. 8.9%

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 8E: Cash Flow Amounts R. Lee Rouse borrows 10,000 that is to be repaid in 24 equal monthly installments...

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Question

A loan of £5,000 is to be repaid by level monthly instalments in
arrear over a period of five years,the flat rate of interest for
this transaction being 4.7% per annum. APR of the transaction
is
Select one:
a. 7.13%
b. 9.54%
C. 6.45%
d. 5.16%
e. 8.9%

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