if you borrow 3000 and pay back 3410 after 15


If you borrow $3000 and pay back $3410 after 1.5 years,

a) What is the interest rate charged if the payment period is 1.5 years?

b) What is the annual compounding interest charged?

c) Using the compounding annual interest rate from above, what is the nominal, period interest rate and corresponding effective interest rate if compounding is hourly? Assume 30 days per month.

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Econometrics: if you borrow 3000 and pay back 3410 after 15
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