A loan of $3,000 for a new, high end laptop computer is to be repaid in 15 end of month payments (starting one month from now) The monthly payments are determined as follows What nominal and effective interest rates per year are actually being paid Hint Draw a cash flow diagram from the perspective...

3000 255 PA i 15 i 32 per month r ...

A loan of $3,000 for a new, high-end laptop computer is to be repaid in 15 end-of-month

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A loan of $3,000 for a new, high-end laptop computer is to be repaid in 15 end-of-month payments (starting one month from now). The monthly payments are determined as follows.

Loan principal Interest for 15 months at $3,000 1.5% per month Loan application fee 675 150 Total $3,825 Monthly payment

What nominal and effective interest rates per year are actually being paid? Hint: Draw a cash-flow diagram from the perspective of the lender.

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Engineering Economy

ISBN: 978-0133439274

16th edition

Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

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Question Posted: Dec 03, 2018 12:38 PM

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A loan of $3,000 for a new, high-end laptop computer is to be repaid in 15 end-of-month

Question:

Loan principal Interest for 15 months at $3,000 1.5% per month Loan application fee 675 150 Total $3,825 Monthly payment = $3,825/15 = $255 %3!

Step by Step Answer:

3000 255 PA i 15 i 32 per month r ...View the full answer

Engineering Economy

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