Question
Today is 1 July 2018. MQU bank is offering a 25 year $1,000,000 loan product from July 2018 to June 2043 to its customers.For this
Today is 1 July 2018. MQU bank is offering a 25 year $1,000,000 loan product from July 2018 to June 2043 to its customers.For this loan product, each customer can have an option to defer the repayment by 6 months. Specifically, customers can borrow $1,000,000 on 1 July 2018 and their payment will be paid at the beginning of each month with an amount of $6,500 from January 2019 to December 2043. Assume that there is an annual fee of 350 paid on 1 July of each year from 2018 to 2043 and the first payment is on today. For this option, MQU will charge an additional fee with amount of $35,000 on 1 January 2019. Use the Goal Seek to find the implied annual nominal rate of interest payable monthly charged by MQU bank.
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