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You take out a 3-year, $9000 loan at 8% interest with monthly payments. The lender charges you a $100 fee that can be paid off,
You take out a 3-year, $9000 loan at 8% interest with monthly payments. The lender charges you a $100 fee that can be paid off, interest free, and equal monthly installments over the life of the loan. Thinking of the fee as an additional interest, what is the actual annual interest rate you will pay?
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Fixed Income Securities Tools For Todays Markets
Authors: Bruce Tuckman, Angel Serrat
4th Edition
1119835550, 978-1119835554
