Excellent bank has offered you $40,000, 30-year loan to purchase an equipment in your Factory. The loan payments are to be made on monthly basis. If the total payment at the end of the thirty-year period is $134964.00. Determine the effective annual interest rate if the interest is compounded monthly
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.
Excellent bank has offered you $40,000, 30-year loan to purchase an equipment in your Factory. The loan payments are to be made on monthly basis. If the total payment at the end of the thirty-year period is $134964.00. Determine the effective annual interest rate if the interest is compounded monthly
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