Bry borrowed a certain amount from ABC lending corp. In their contract, Kem must pay PHP 150,000 in three years. If the simple interest rate is 7.5%, what is the effective interest rate per year?
Bry borrowed a certain amount from ABC lending corp. In their contract, Kem must pay PHP 150,000 in three years. If the simple interest rate is 7.5%, what is the effective interest rate per year?
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 14P
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Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
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Bry borrowed a certain amount from ABC lending corp. In their contract, Kem must pay PHP 150,000 in three years. If the simple interest rate is 7.5%, what is the effective interest rate per year?
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