What annual rate of return is implied on a $2,500 loan taken next year when $3,500 must be repaid in year 4?
Answer to relevant QuestionsTen years ago, Hailey invested $2,000 and locked in a 9 percent annual interest rate for 30 years (end 20 years from now). Aidan can make a 20-year investment today and lock in a 10 percent interest rate. How much money ...Determine the interest rate earned on a $2,300 deposit when $2,900 is paid back in one year. Use the idea of compound interest to explain why EAR is larger than APR.What is the present value of a $900 annuity payment over five years if interest rates are 8 percent?A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan at $1,500 per month for the next three years and then $500 per month for two years after that. If the bank is charging ...
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