ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Chapter 7A, Problem 2P
To determine
The calculation of Interest rate.
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Solve without using Excel (economics factor table is okay)
LandMING has borrowed $8 Million to implement a new production line in its Dallas metal plant. If the interest rate on the loan is 10% per year (on unrecovered balance) for 5 years, what is the amount of interest payable for year 2?
Write the formula with which the effective rate is related to the APR?
Are all the cash flows estimated in actual dollars?
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