What is the actual rate of interest being charged by the s


The S. Ketchy Bank offers the following loan. You can borrow $10,000 today, payable in three years. You do not need to make monthly payments. Instead you pay the full principal and interest in three years. The interest rate is 6% annual rate compounded monthly. There is also a loan application fee of $500 due at the time the loan is made, and an administrative fee of another $500 due at the time the loan is repaid. What is the actual rate of interest being charged by the S. Ketchy bank?

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Financial Management: What is the actual rate of interest being charged by the s
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