Question: Prove that the interest rate of the below offer of 3.03% flat rate (fix rate) is equivalent to 5.69% if reducing rate (effective rate);

Prove that the interest rate of the below offer of 3.03% flat

Prove that the interest rate of the below offer of 3.03% flat rate (fix rate) is equivalent to 5.69% if reducing rate (effective rate); use the following, As stated loam amount up to 2,000,000 (two million dirham) Loan period, (not stated), normally its 25 years for local and 15 years for expat. Loans up to AED 2 Mn Offers Free 1st year Free Overdraft set up Life Insurance Terms and conditions apply. *equivalent to 5.69% p.a. reducing > Loans disbursed by 10th Mar 2021. Attractive low-interest rates starting from 3.03% * p.a. flat Offers valid from 14th to 21st Feb 2021.

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