Your bank will lend you $4,000 for 45 days at a cost of $50 interest. What is your effective rate of interest? Note: Use a 360-day year. Do not round intermediate calculations. Input your answer as a whole percent. Effective rate %
Your bank will lend you $4,000 for 45 days at a cost of $50 interest. What is your effective rate of interest? Note: Use a 360-day year. Do not round intermediate calculations. Input your answer as a whole percent. Effective rate %
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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![Your bank will lend you $4,000 for 45 days at a cost of $50 interest.
What is your effective rate of interest?
Note: Use a 360-day year. Do not round intermediate calculations. Input your answer as a whole percent.
Effective rate
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F660ae21e-eeee-41ba-93ac-2d4d9b6e8167%2F45fb9103-32a9-4907-ad32-23386b09a906%2Fe927oo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Your bank will lend you $4,000 for 45 days at a cost of $50 interest.
What is your effective rate of interest?
Note: Use a 360-day year. Do not round intermediate calculations. Input your answer as a whole percent.
Effective rate
%
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