Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

For the first two years, a certain loan had a continuous interest rate at 6,5%, for the next 15 months a compound interest rate at

For the first two years, a certain loan had a continuous interest rate at 6,5%, for the next 15 months a compound interest rate at 7% with quarterly-capitalisation. Finally a compound interest rate was used at 8,5% with semi-annual capitalization for the last 9 months. Please find the average effective interest rate for this loan throughout the whole period (according to compound interest rate method).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Real Estate Finance

Authors: Sherry Shindler Price

1st Edition

0934772185, 9780934772181

More Books

Students also viewed these Finance questions

Question

What barriers do we face, and how can they be eliminated?

Answered: 1 week ago