Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a loan may be repaid using the following two optio

A loan may be repaid using the following two options of payments: i) Payments of...

60.1K

Verified Solution

Question

Finance

A loan may be repaid using the following two options of payments:

i) Payments of 2,000 at the end of each year for eighteen years

ii) Payments of 2,500 at the end of each year for nine years.

Which of the following is closest to the effective annual interest rate being paid on the loan?

Note: the amount of loan is not provided.

A) 14% B) 17% C) 20% D) 23% E) 26%

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Electrical Engineering
1.2K views

discuss with the aid of diagram, how a ground fault interrupter (GFI) and an isolation transformer...

General Management
1.2K views

A Substantive selection predictors being an integrity test.  What are its advantages, disadvantages, and validity.

Accounting
1.2K views

The Sundance Corporation manufactures cellular modems. It manufactures its own cellular modem circuit boards? (CMCB), an important part...

Biology
1.2K views

Study the chart Percentage of Total Population Living in Central Cities and Suburbs 1910 2000...

Calculus
1.2K views

The cost of a trip is $3.15 plus $0.95 for every kilometre that you ride...

Calculus
1.2K views

An outboard motor has an initial price of 1 440 A service contract costs 350...

Algebra
1.2K views

Solve the equation Check your answer in the original example 4m 6 9 3

Accounting
1.2K views

A car-sharing service collects a one-time $600 refundable membership...

Accounting
1.2K views

Phibbs Company prepared the following data for the year. ...

Accounting
1.2K views

What is the difference between straight-line and effective interest rate methods of amortization? Which do...

Finance
1.2K views

How comfortable an investor is with risk is called his or her risk avoidance TRUE...

Accounting
1.2K views

For Tweedledee Ltd, sales revenue is $2,500,000, fixed expenses are $1,000,000, and the contribution margin...