Selim plans to borrow $1,000 from Garanti Bank and agrees to repay it in 12 equal monthly
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Selim plans to borrow $1,000 from Garanti Bank and agrees to repay it in 12 equal monthly installments of $90 over the following year. However, under this plan, Garanti charges Selim a $29 credit processing fee, which is paid on the credit application date. Assume that Selim's credit will be approved and paid on the same day of his application. Calculate the loan's effective yearly interest rate.
Related Book For
Investment Analysis and Portfolio Management
ISBN: 978-1305262997
11th Edition
Authors: Frank K. Reilly, Keith C. Brown, Sanford J. Leeds
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