Tytos borrowed $16500 to pay for the wedding of his daughter, Genna. Tytos repair the loan after 3 years with a single payment of $19224. Assuming the interest compounded monthly, what was the interest rate? Round the the nearest 2 decimal places

Tytos borrowed $16500 to pay for the wedding of his daughter, Genna. Tytos repair the loan after 3 years with a single payment of $19224. Assuming the interest compounded monthly, what was the interest rate? Round the the nearest 2 decimal places

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

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