A finance company offers a 12% plan. The cost of a one-year loan is 12%, and this
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Question:
A finance company offers a "12% plan". The cost of a one-year loan is 12%, and this cost is added to the loan. This total is then divided by 12 to get the monthly payments. Calculate the effective interest rate being charged for a loan of $6,000.
- 21.46% per month
- 22.34% per year
- 12.00% per year
- 23.70% per year
Related Book For
Fundamentals of Investments
ISBN: 978-0132926171
3rd edition
Authors: Gordon J. Alexander, William F. Sharpe, Jeffery V. Bailey
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