Question
$10,000 is borrowed for one year at 1% interest charged per month. If the same amount could be borrowed at 12% interest charged at the
$10,000 is borrowed for one year at 1% interest charged per month. If the same amount could be borrowed at 12% interest charged at the end of the year, how much could be saved? What is the nominal and effective rate for each investment alternative.
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Engineering Economic Analysis
Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle
9th Edition
978-0195168075, 9780195168075
