A loan of $3,000 for a new, high-end laptop computer is to be repaid in 15 end-of-month
Question:
What nominal and effective interest rates per year are actually being paid? Hint: Draw a cash-flow diagram from the perspective of the lender.
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Loan principal Interest for 15 months at $3,000 1.5% per month Loan application fee 675 150 Total $3,825 Monthly payment = $3,825/15 = $255 %3!
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Related Book For
Engineering Economy
ISBN: 978-0133439274
16th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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