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Red Lizard Co loan payment O A rate equ A rate les: O A rate equ O A rate equ O A rate equ 20000

Red Lizard Co loan payment O A rate equ A rate les: O A rate equ O A rate equ O A rate equ 20000

Essentials Of Investments
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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JUG Red Lizard Construction just borrowed $58,500.00. The terms of the loan require the company to make equal monthly payments forever. The first monthly payment is due in 1 month. If the regular monthly loan payment is $540.00, then what is the EAR of the loan? A rate equal to or greater than 11.41% but less than 11.90% A rate less than 9.40% or a rate greater than 11.90% A rate equal to or greater than 10.82% but less than 11.12% A rate equal to or greater than 9.40% but less than 10.82% O A rate equal to or greater than 11.12% but less than 11.41% 4
Transcribed Image Text:JUG Red Lizard Construction just borrowed $58,500.00. The terms of the loan require the company to make equal monthly payments forever. The first monthly payment is due in 1 month. If the regular monthly loan payment is $540.00, then what is the EAR of the loan? A rate equal to or greater than 11.41% but less than 11.90% A rate less than 9.40% or a rate greater than 11.90% A rate equal to or greater than 10.82% but less than 11.12% A rate equal to or greater than 9.40% but less than 10.82% O A rate equal to or greater than 11.12% but less than 11.41% 4
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