Question
1-A store offers a 'special deal' to lend us $5,500 today, whereby you pay off the loan in one year with 12 monthly payments of
1-A store offers a 'special deal' to lend us $5,500 today, whereby you pay off the loan in one year with 12 monthly payments of $500 each, with the first payment due 1-month from today. What effective annual rate (EAR) are they charging us on the loan?
One client owes your firm $1000 per month for the next 18 months. Another client owes you $40,000 to be paid all at once 18 months from today. What is the combined present value of cash you will receive from your clients if r = 6% APR with monthly compounding?
please answer both question for full rate
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started