Question: The Business Development Bank is willing to loan Su Mei

The Business Development Bank is willing to loan Su Mei the $25,000 she needs to start her new business. The loan will require monthly payments of $556.11 over five years.
a. What is the effective monthly rate on this loan?
b. With monthly compounding, what is the nominal (annual) interest rate on this loan?


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  • CreatedFebruary 25, 2015
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