A business man who owns a chain of fast foods needs to borrow 15,000 dollars to remodel his business. The bank offers to loan the 15,000 to the business man for 24 months only. He must make monthly payments of 1000 dollars. Find the monthly interest rate of the loan and the effective annual interest rate using the interpolation method
A business man who owns a chain of fast foods needs to borrow 15,000 dollars to remodel his business. The bank offers to loan the 15,000 to the business man for 24 months only. He must make monthly payments of 1000 dollars. Find the monthly interest rate of the loan and the effective annual interest rate using the interpolation method
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A business man who owns a chain of fast foods needs to borrow 15,000 dollars to remodel his business. The bank offers to loan the 15,000 to the business man for 24 months only. He must make monthly payments of 1000 dollars. Find the monthly interest rate of the loan and the effective annual interest rate using the interpolation method
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