If a firm borrowed $500,000 at a rate of 10 percent, simple interest, with monthly interest payments
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If a firm borrowed $500,000 at a rate of 10 percent, simple interest, with monthly interest payments and a 365-day year, what would the required interest payment be for a 30-day month? What would the effective annual rate be? If this loan had been on a 10 percent add-on basis, payable in 12 end-of-month installments, what would the monthly payments be, and the APR and effective rates?
Related Book For
Intermediate Financial Management
ISBN: 978-1285850030
12th edition
Authors: Eugene F. Brigham, Phillip R. Daves
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