Question
(10) Let a nominal (quoted) interest rate be: INOM=10%. a. Find IPER for M=12 (monthly periodical interest rates). b. Find the effective (equivalent) annual rate
(10) Let a nominal (quoted) interest rate be: INOM=10%. a. Find IPER for M=12 (monthly periodical interest rates). b. Find the effective (equivalent) annual rate (EFF%/EAR) for monthly compounded rates.
(10) Suppose that you borrow $5,000 with 6% annual rate loan for 5 years. a. Find the annual loan payment to pay off the loan in 5 years b Find the interest paid and the principal repaid in Year 1.
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
15th edition
77861612, 1259194078, 978-0077861612, 978-1259194078
