A guy gets a loan of 420.000.000 dollars, with an interest rate of 1.5% per annum11 months

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A guy gets a loan of 420.000.000 dollars, with an interest rate of 1.5% per annum11 months later, the loan stands at 490.000.000 dollars because the loaning conditions have changed.

How do I calculate the annualized effective interest rate?

Not sure how to do it when I only have 11 months.

Am I supposed to calulate the rate for the 11 months, divide it by 11 and multiply by 12, or am I supposed to use 12/11 as an exponent?

Related Book For answer-question

Engineering Economic Analysis

ISBN: 9780195168075

9th Edition

Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle

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Posted Date: Apr 29, 2023 08:14 AM

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A guy gets a loan of 420.000.000 dollars, with an interest rate of 1.5% per annum11 months

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Engineering Economic Analysis

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