Karen Wilson thinks that she needs to borrow $7,600 for 2 years. She doesn’t have a very good credit rating, so most finance companies want to charge her a high interest rate. She finally finds a lender that will loan her the money at 12% compounded monthly. How much interest will Karen have to pay to this particular lender?
Karen Wilson thinks that she needs to borrow $7,600 for 2 years. She doesn’t have a very good credit rating, so most finance companies want to charge her a high interest rate. She finally finds a lender that will loan her the money at 12% compounded monthly. How much interest will Karen have to pay to this particular lender?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Karen Wilson thinks that she needs to borrow $7,600 for 2 years. She doesn’t have a very good credit rating, so most finance companies want to charge her a high interest rate. She finally finds a lender that will loan her the money at 12% compounded monthly. How much interest will Karen have to pay to this particular lender?
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