Question
Solve the interest rate of the problem below: 1. Loisa loans 40,000 from a lending company to start her carwash business. The loan has an
Solve the interest rate of the problem below:
1. Loisa loans 40,000 from a lending company to start her carwash business. The loan has an effective interest rate of 8%, payable within two months. How much are the interest per month and monthly payment with interest on her loan?
Solve the Nominal and Effective Interest rates and add your conclusion on the problem.
2. Giselle wants to get a 20,000 loan from a bank to start a milk tea business. The loan has a 10% interest and it must be paid within three months. If she can choose between nominal and effective interest rates, which is more profitable for her?
SHOW YOUR COMPLETE SOLUTION.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started