Question
Calculating the effectice cost of borrowing. Dave borrowed $500 and paid $50 in interest when he repaid the principal after 1 year. The bank also
Calculating the effectice cost of borrowing.
Dave borrowed $500 and paid $50 in interest when he repaid the principal after 1 year.
The bank also charged him a $5 service fee on a discount bases.
What was the effective cost of his loan?
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International Financial Management
Authors: Jeff Madura, Roland Fox
5th Edition
1473770505, 978-1473770508
