Question
Martin is offered an investment where for $4,500 today, he will receive $4,680 in one year. He decides to borrow $4,500 from the bank to
Martin is offered an investment where for $4,500 today, he will receive $4,680 in one year. He decides to borrow $4,500 from the bank to make this investment. What is the maximum interest rate the bank needs to offer on the loan if Martin is at least to break even on this investment?
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Economics For Investment Decision Makers
Authors: Sandeep Singh, Christopher D Piros, Jerald E Pinto
1st Edition
1118111966, 9781118111963
