Basset, a furniture manufacturing company, borrowed $1 million and repaid the loan through monthly payments of $20,000

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Basset, a furniture manufacturing company, borrowed $1 million and repaid the loan through monthly payments of $20,000 for 2 years plus a single lump-sum payment of $1 million at the end of 2 years. The interest rate on the loan was closest to:

(a) 0.5% per month

(b) 2% per month

(d) 8% per year

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Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

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Question Posted: Dec 12, 2018 10:41 AM

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Basset, a furniture manufacturing company, borrowed $1 million and repaid the loan through monthly payments of $20,000

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Engineering Economy

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