What is the annual interest rate if a simple interest loan of $10,000 for 4 years charges a total of $2,800 interest? The loan is repaid with a single payment at the end of year 4 Select one: a. i such that 12800= 10000(F/P,i,4) b. 7% c. 28% d. cannot be determined from the information given
What is the annual interest rate if a simple interest loan of $10,000 for 4 years charges a total of $2,800 interest? The loan is repaid with a single payment at the end of year 4 Select one: a. i such that 12800= 10000(F/P,i,4) b. 7% c. 28% d. cannot be determined from the information given
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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![What is the annual interest rate if a simple interest loan of $10,000 for 4 years charges a total of
$2,800 interest? The loan is repaid with a single payment at the end of year 4
Select one:
a. i such that 12800= 10000(F/P,i,4)
b. 7%
3
c. 28%
d. cannot be determined from the information given](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7887d4fa-8cd4-47d9-8fe9-9b43f338ca2b%2F27f674f9-95b8-406b-8a87-8590f1c87d3a%2Fsrwwnrg_processed.png&w=3840&q=75)
Transcribed Image Text:What is the annual interest rate if a simple interest loan of $10,000 for 4 years charges a total of
$2,800 interest? The loan is repaid with a single payment at the end of year 4
Select one:
a. i such that 12800= 10000(F/P,i,4)
b. 7%
3
c. 28%
d. cannot be determined from the information given
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