a) Payment of $5,000 per year for 6 years will repay an original loan of $25,000? b) Thirty-six monthly deposits of $100 will result in $4,500 at the end of three years? What is the effective interest rate for this case?

a) Payment of $5,000 per year for 6 years will repay an original loan of $25,000? b) Thirty-six monthly deposits of $100 will result in $4,500 at the end of three years? What is the effective interest rate for this case?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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What annual interest rate paid for if:
a) Payment of $5,000 per year for 6 years will repay an original loan of $25,000?
b) Thirty-six monthly deposits of $100 will result in $4,500 at the end of three years?
What is the effective interest rate for this case?

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