What is the nominal annual rate of interest compounded quarterly if a loan of $22,500 is repaid in eight years by payments of $1000 made at the end of every three months? The nominal annual rate of interest is % compounded quarterly. (Round to two decimal places as needed.)

What is the nominal annual rate of interest compounded quarterly if a loan of $22,500 is repaid in eight years by payments of $1000 made at the end of every three months? The nominal annual rate of interest is % compounded quarterly. (Round to two decimal places as needed.)

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 3STP

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Question

4. What is the nominal annual rate of interest compounded quarterly if a loan of $22,500 is repaid in eight years by payments
of $1000 made at the end of every three months?
The nominal annual rate of interest is
% compounded quarterly.
(Round to two decimal places as needed.)

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