Question
Johnny has got a four-year loan for $400,000. The effective annual rate (EAR) of the loan at the end of year 4 is 10%. The
Johnny has got a four-year loan for $400,000. The effective annual rate (EAR) of the loan at the end of year 4 is 10%. The interest rates for years 1 to 4 are 8.5%, 9.0%, 9.5% and 10%, respectively. Express your numerical answers in two decimal places.
The EAR for the first year is ____%.
The EAR for year 2 to year3 is ____%.
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Managerial Accounting For Undergraduates
Authors: Christensen, Theodore E. Hobson, L. Scott Wallace, James S.
1st Edition
1618531123, 9781618531124
