PERSONAL FINANCE
PERSONAL FINANCE
8th Edition
ISBN: 9780134730981
Author: KEOWN
Publisher: PEARSON
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Chapter 3, Problem 17PA
Summary Introduction

To determine:

The rate of interest to be charged on $7,600 for 7 years to receive an amount of $5,200 at the end of the period.

Introduction:

Interest rate refers to the rate of return that an investor will receive on its investment or it can be refer to as the rate of charge that a borrower is liable to pay periodically on his borrowed amount. The change in interest rate results in the change in the amount to be received or to be paid at the end of a period.

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