Question
What interest rates are implied by the following lending arrangements? a) You borrow RM500 and repay RM535 in one year with simple interest. b) You
What interest rates are implied by the following lending arrangements?
a) You borrow RM500 and repay RM535 in one year with simple interest.
b) You lend RM1,950 and are repaid RM2,078.66 in two years with annually compounding.
c) You lend RM750 and are repaid RM1,014.46 in five years with quarterly compounding.
d) You borrow RM12,500 and repay RM19,364.24 in three years under monthly compounding.
(Note: In part c and d, please give your answer as the annual nominal rate.)
ANS : 11. a) 7% b) 3.25% c) 6.09% d) 14.68% Pls attach the formula used, and explain in detail. Pls do not answer in excel format. Thank you in advance.
(MR ALWAYS RIGHT PLS DO NOT ANSWER THIS QUESTION, AS SOME OF YOUR PREVIOUS ANSWERS WERE WRONG.TQ)
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