Question
Suppose a relative wants to borrow $3,000. She offers to repay you $1,000 every year for four years. What interest rate are you being offered?
Suppose a relative wants to borrow $3,000. She offers to repay you $1,000 every year for four years. What interest rate are you being offered?
Step by Step Solution
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Step: 1
To calculate the interest rate being offered in this loan we need to use the present value formula PV PMT x 1 1 rn r where PV is the present value of ...
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Step: 2
Step: 3
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Numerical Methods for Engineers
Authors: Steven C. Chapra, Raymond P. Canale
7th edition
978-0073397924, 007339792X, 978-0077492168, 77492161, 978-9352602131
