How would the effective annual interest rate for problem 27


How would the effective annual interest rate for Problem 27 change if the bank charged a 1% loan origination fee?
In Problem 27, determine the effective annual interest rate on a $75,000 short-term loan, with a term of one year and a nominal interest rate of 12%. The bank discounts the interest.

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Finance Basics: How would the effective annual interest rate for problem 27
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