A finance company offers a 12% plan. The cost of a one-year loan is 12%, and this

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A finance company offers a "12% plan". The cost of a one-year loan is 12%, and this cost is added to the loan. This total is then divided by 12 to get the monthly payments. Calculate the effective interest rate being charged for a loan of $6,000.

21.46% per month
22.34% per year
12.00% per year
23.70% per year

Related Book For answer-question

Fundamentals of Investments

ISBN: 978-0132926171

3rd edition

Authors: Gordon J. Alexander, William F. Sharpe, Jeffery V. Bailey

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Posted Date: Jul 23, 2019 02:35 AM

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A finance company offers a 12% plan. The cost of a one-year loan is 12%, and this

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Loan amount 6000 Interest amount 6000 12 720 Total payments ... View the full answer

Fundamentals of Investments

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