Chatterton Company has obtained a $75,000 short-term loan from the bank with the understanding that Chatterton will repay the loan in two equal monthly installments of $38,250 each. The first installment is due after 30 days, and the second after 60 days. Find the cost of this loan for Chatterton. Assuming 365 Days in year Cost of this loan for Chatterton per 30 days = rate (2,38250,-75000,0) Cost of this loan for Chatterton per 30 days = 1.33% I calculated this using excel, how do you do it by hand.
Annual Cost of this loan for Chatterton = (1+1.33%)^(365/30) - 1 Annual Cost of this loan for Chatterton = 17.44% Answer Cost of this loan for Chatterton = 17.44%
Cost of this loan for Chatterton per 30 days = 1.33% I calculated this using excel, how do you do it by hand?