Como Company borrowed $5300 from its bank. Como will repay $7800 in five years. What is the approximate interest rate that Como will incur on this loan, assuming annual compounding? Use the future value of $1 table.Excerpt of Future Value of $1 Table Periods 7% 8% 9% 1 1.07000 1.08000 1.09000 2 1.14490 1.16640 1.18810 3 1.22504 1.25971 1.29503 4 1.31080 1.36049 1.41158 5 1.40255 1.46933 1.53862 6 1.50073 1.58687 1.67710 Group of answer choices 32% 7% 9% 8%
Como Company borrowed $5300 from its bank. Como will repay $7800 in five years. What is the approximate interest rate that Como will incur on this loan, assuming annual compounding? Use the future value of $1 table.Excerpt of Future Value of $1 Table Periods 7% 8% 9% 1 1.07000 1.08000 1.09000 2 1.14490 1.16640 1.18810 3 1.22504 1.25971 1.29503 4 1.31080 1.36049 1.41158 5 1.40255 1.46933 1.53862 6 1.50073 1.58687 1.67710 Group of answer choices 32% 7% 9% 8%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Como Company borrowed $5300 from its bank. Como will repay $7800 in five years. What is the approximate interest rate that Como will incur on this loan, assuming annual compounding? Use the future value of $1 table.
Excerpt of Future Value of $1 Table
Excerpt of Future Value of $1 Table
| Periods | 7% | 8% | 9% |
| 1 | 1.07000 | 1.08000 | 1.09000 |
| 2 | 1.14490 | 1.16640 | 1.18810 |
| 3 | 1.22504 | 1.25971 | 1.29503 |
| 4 | 1.31080 | 1.36049 | 1.41158 |
| 5 | 1.40255 | 1.46933 | 1.53862 |
| 6 | 1.50073 | 1.58687 | 1.67710 |
Group of answer choices
32%
7%
9%
8%
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