In 1555 King Henry borrowed money from his bankers on the condition that he pay 5% of the loan at each fair (there were four fairs per year) until he had made forty payments. At that time the loan would be considered repaid. What effective annual interest did King Henry pay?
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.
In 1555 King Henry borrowed money from his bankers on the condition that he pay 5% of the loan at each fair (there were four fairs per year) until he had made forty payments. At that time the loan would be considered repaid. What effective annual interest did King Henry pay?
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