Toni received a loan of $200,000 at 10% interest. The interest was deducted from the loan at the time the money was borrowed. If, at the end of one year, Toni has to pay the full amount of $200,000, what is the actual rate of interest?

Toni received a loan of $200,000 at 10% interest. The interest was deducted from the loan at the time the money was borrowed. If, at the end of one year, Toni has to pay the full amount of $200,000, what is the actual rate of interest?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter17: Financial Markets

Section: Chapter Questions

Problem 6SCQ: What is the total amount of interest from a 5,000 loan after three years with a simple interest rate...

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