A customer defaults on a 282 million the financial


Question: A customer defaults on a $28.2 million. The financial institution recovers $18.4 million, 20.5% of which is absorbed by administrative costs. The recovery process takes 2.6 years. The average discount rate over this period was 9%. What is the recovery rate on this defaulted loan. enter your answer as a decimal with four places of precision (i.e. 0.1234).

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Finance Basics: A customer defaults on a 282 million the financial
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