Wilson needs $10,000 and Guido has agreed to lend him the $10,000 if he makes 10 monthly

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Wilson needs $10,000 and Guido has agreed to lend him the $10,000 if he makes 10 monthly payments to Guido in the amount of $1,100, to be paid at the end of each month. Because the total amount to be repaid is $11,000, Guido points out that the interest rate is his customary 10% ($1,000 in interest on a $10,000 principal loan). What is the effective annual rate (E.A.R.) on this loan?

Posted Date: May 16, 2024 05:11 AM

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Wilson needs $10,000 and Guido has agreed to lend him the $10,000 if he makes 10 monthly

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Wilson borrowed 10000 from Guido He will make 10 monthly payments of 1100 ... View the full answer

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