(415) Effective Rate of Interest Find the interest rate (or rates of return) in each of the...
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(4–15)
Effective Rate of Interest Find the interest rate (or rates of return) in each of the following situations.
a. You borrow $700 and promise to pay back $749 at the end of 1 year.
b. You lend $700 and receive a promise to be paid $749 at the end of 1 year.
c. You borrow $85,000 and promise to pay back $201,229 at the end of 10 years.
d. You borrow $9,000 and promise to make payments of $2,684.80 at the end of each of the next 5 years.
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Related Book For
Financial Management Theory And Practice
ISBN: 9781439078105
13th Edition
Authors: Eugene F. Brigham, Michael C. Ehrhardt
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