Then the borrow pays 1200 interest up front thereby, Finance Basics

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Then the borrow pays 1200 interest up front thereby

A discount interest loan is a loan arrangement where the interest and any other related charges are calculated at the time the loan is closed. suppose a one-year loan is started as $10,000 and the interest rate is 12%. Then, the borrow pays $1,200 interest up front, thereby receiving net funds of $8,800 and repaying $10,000 in a year. Whats the effective interest rate on this one year loan?

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Finance Basics: Then the borrow pays 1200 interest up front thereby

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Finance Basics: Then the borrow pays 1200 interest up front thereby

Reference No:- TGS0635472

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Finance Basics: Then the borrow pays 1200 interest up front thereby

Reference No:- TGS0635472

Recent Questions Asked Finance Basics

Q : On a clear day at a certain location a 100 vm vertical

Q : A lake with a surface area of 1050 acres was monitored over

Q : A department store has offered you a credit card that

Q : Ball a is thrown vertically upward from the top of a

Q : Then the borrow pays 1200 interest up front thereby

Q : As the sun rises over a still pond an angle will be reached

Q : What is the nominal interest rate per year what is the

Q : A cylinder with a 60 in diameter 120 in height is put under

Q : A loan of 20000 is to be financed to assist a person

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