Your business takes a loan for $5,000. The loan term is 90 days and you will pay $200 in interest charges. What is the Effective Rate?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 15P
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Your business takes a loan for $5,000. The loan term is 90 days and you will pay $200 in interest
charges. What is the Effective Rate?
Transcribed Image Text:Your business takes a loan for $5,000. The loan term is 90 days and you will pay $200 in interest charges. What is the Effective Rate?
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