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Mayell Munyai obtained a loan from her bank to the amount of R32 500. The loan is repayable over a 6-month period at 13.00% per
Mayell Munyai obtained a loan from her bank to the amount of R32 500. The loan is repayable over a 6-month period at 13.00% per annum. Mayell knows that her effective
annual rate of return (EAR) and the annual percentage return (APR) will be higher than the 13.00%, but she is not sure how to calculate it. She asked you to do the necessarycalculations for her.
Assume the loan obtained is a simple interest loan. Calculate Mayell's rate per period
(rPER) for this simple interest loan.
Assume the loan obtained is a simple interest loan. Calculate Mayell's EAR (rEAR) for
this simple interest loan.
Assume the loan obtained is a discount interest loan. Calculate Mayell's rate per
period (PER) for this discount interest loan.
Assume the loan obtained is a discount interest loan. Calculate Mayell's annual
percentage return (APR) for this discount interest loan.
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Interest Rate Swaps And Their Derivatives A Practitioners Guide
Authors: Amir Sadr
1st Edition
0470443944, 978-0470443941
