A bank offers you a loan of $14,000. You need to pay $14,050 after one week....
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A bank offers you a loan of $14,000. You need to pay $14,050 after one week. Draw cash flow diagrams. a) What is the effective interest rate per week? b) What is the nominal annual interest rate? c) What is the effective annual interest rate? d) What is the effective interest rate per quarter? A bank offers you a loan of $14,000. You need to pay $14,050 after one week. Draw cash flow diagrams. a) What is the effective interest rate per week? b) What is the nominal annual interest rate? c) What is the effective annual interest rate? d) What is the effective interest rate per quarter?
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