A loan of $20,000 is to be financed to assist a persons college education. Based upon monthly
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A loan of $20,000 is to be financed to assist a person’s college education. Based upon monthly compounding for 48 months, the end‐of‐the‐month equal payment is quoted as $520. What nominal interest rate is being charged?
CompoundingCompounding is the process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time. This growth, calculated using exponential functions, occurs because the investment will...
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