In a discount interest loan, you pay the interest payment up front. For example, if...
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In a discount interest loan, you pay the interest payment up front. For example, if a year loan is stated as $ and the interest rate is the borrower paystimes $ $ immediately, thereby receiving net funds of $ and repaying $ in a year.
What is the effective interest rate on this loan?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to decimal places.
What is the effective annual rate on a year loan with an interest rate quoted on a discount basis of
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to decimal places.
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