A $1 million loan requires five end-of-year equal payments of $284,333. a. Calculate the effective interest rate

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A $1 million loan requires five end-of-year equal payments of $284,333.
a. Calculate the effective interest rate on this loan.
b. How much interest (in dollars) is paid over the life of this loan?

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Contemporary Financial Management

ISBN: 9780324289114

10th Edition

Authors: James R Mcguigan, R Charles Moyer, William J Kretlow

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Question Posted: Jul 17, 2012 04:20 AM

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A $1 million loan requires five end-of-year equal payments of $284,333. a. Calculate the effective interest rate

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a 1000000 284333PVIFA i5 PVIFA 3517 From Table IV i 13 b Principal Year ...View the full answer

Contemporary Financial Management

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