What is a loan amortization schedule
Problem: What is a loan amortization schedule? How would you use it to determine your loan interest rate? What factors would affect your choice between two loans?
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What is the effective interest rate on the typical loan with a nominal 8% interest rate and a 10% compensating balance?
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What is a loan amortization schedule? How would you use it to determine your loan interest rate? What factors would affect your choice between two loans?
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How much difference do you think it makes for your bank account whether there is continuous compounding of interest, or only monthly or annual compounding?
What is the effective annual rate of interest if Y pays on the due date rather than on day 30?
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