. Suppose you are paying GHS 51.88 per week for 14 years to repay a GH¢18,000 loan. What is the annual effective interest rate. 2. Calculate the effective interest rate if the interest rate is 26% per annum compounded

. Suppose you are paying GHS 51.88 per week for 14 years to repay a GH¢18,000 loan. What is the annual effective interest rate. 2. Calculate the effective interest rate if the interest rate is 26% per annum compounded

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 14P

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Question

1. Suppose you are paying GHS 51.88 per week for 14 years to repay a GH¢18,000 loan.
What is the annual effective interest rate.

2. Calculate the effective interest rate if the interest rate is 26% per annum compounded
daily.

3. Calculate the total amount of money that would be accumulated if an amount of
money of GH¢ 6,000 is invested quarterly for 15 years at an interest rate of 22% per
year compounded quarterly

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