Find the annual effective cost rate for a loan of S/1000.00 that charges a TEA of 40%, for one year. Also charged, at the time of disbursement, is a commission of 0.5% of the loan and 1.5% of the loan for insurance, in addition, a shipping fee of S/20.00 per year is charged.

Answer rating: 100% (QA)

To find the annual effective cost rate for the given loan we need to calculate the total cost of the ... View the full answer