On a loan of 500 the monthly payment is 54012 45 there is


A bank offers a personal loan called "The Eight Per Cent Plan." The bank adds 8% to the amount borrowed; the borrower pays back 1/12 of this total at the end of each month for a year. On a loan of $500, the monthly payment is 540/12 = $45. There is also an administrative fee of $45, payable now. What is the actual effective interest rate on a $500 loan?

Request for Solution File

Ask an Expert for Answer!!
Mechanical Engineering: On a loan of 500 the monthly payment is 54012 45 there is
Reference No:- TGS02155484

Expected delivery within 24 Hours