JD Enterprises borrowed $150,000 for two years from the bank. At the end of the two years,
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Question:
JD Enterprises borrowed $150,000 for two years from the bank. At the end of the two years, they repaid the loan in full with one payment of $175,000. What was the quoted interest rate on the loan? Assume the interest rate is quoted as an APR compounded monthly.
A) 16.67%
B) 7.73%
C) 7.86%
D) 8.33%
Related Book For
Financial Markets And Institutions
ISBN: 978-0132136839
7th Edition
Authors: Frederic S. Mishkin, Stanley G. Eakins
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