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If a loan is issued for $3,500 with a 6.5% interest rate and payable in 4 years, what is the annual interest expense?

If a loan is issued for $3,500 with a 6.5% interest rate and payable in 4 years, what is the annual interest expense?

Corporate Fin Focused Approach
Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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If a loan is issued for $3,500 with a 6.5% interest rate and payable in 4 years, what is the annual interest expense?
Transcribed Image Text:If a loan is issued for $3,500 with a 6.5% interest rate and payable in 4 years, what is the annual interest expense?
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