Question

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Your firm is considering a one-year loan for
$522,000. The fees are 2% of the loan amount
and the interest rate is 4.3%. First, compute the
net amount of funds from the loan. Based on this
net amount, what is the true interest rate of the
loan?
5.23%
5.87%
4.39%
4.10%

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Your firm is considering a one-year loan for $522,000. The fees are 2% of the loan amount and the interest rate is 4.3%. First, compute the net amount of funds from the loan. Based on this net amount, what is the true interest rate of the loan? 5.23% 5.87% 4.39% 4.10%

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