A bank offers a customer a repayment plan on a loan of 50,000.As level instalments of capital
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Question:
A bank offers a customer a repayment plan on a loan of £50,000.As level instalments of capital and interest are paid annually in arrear over a period of 20 years.
Required:
Determine the effective rate of interest per annum that would be paid by the customer on the loan given that the level annual instalment on this loan is £4,012.13.
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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