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You borrow $ 1 , 0 0 0 from the bank and agree to repay the loan over the next year in 1 2 equal
You borrow $ from the bank and agree to repay the loan over the next year in equal monthly payments of $ However, the bank also charges you a loan initiation fee of $ which is taken out of the initial proceeds of the loan. What is the effective annual interest rate on the loan, taking account of the impact of the initiation fee?
You borrow $ from the bank and agree to repay the loan over the next year in equal monthly payments of $ However, the bank also charges you a loan initiation fee of $ which is taken out of the initial proceeds of the loan. What is the effective annual interest rate on the loan, taking account of the impact of the initiation fee?
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
