A 1000 loan over a 10-year period earns an effective rate


A $1000 loan over a 10-year period earns an effective rate of interest of 9% per annum. Interest is paid each year as accrued and the principal is repaid at the end of ten years. If the repayments to the lender are reinvested at 7%, find the yield rate for the lender.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: A 1000 loan over a 10-year period earns an effective rate
Reference No:- TGS0978708

Expected delivery within 24 Hours