Sallymaeee825 Sallymaeee825

23-02-2018
Business

contestada

If mega corp. borrows $9,000 and agrees to pay the lender $10,500 in one year, the annual interest rate on this loan is approximately:

Respuesta :

mathmate mathmate

23-02-2018

In simple interest, the interest rate is
i=(10500-9000)/9000=16.67%

In compound interest, compounded monthly,
10500=9000(1+i/12)^12
=>
APR=12(10500/9000)^(1/12)-1
=11.155%
(effective interest is still 16.67%)

Answer Link

Otras preguntas

Jim Tree receives a salary of $120.00 per week plus commission of 1% on sales to $3,000 and 2% on amounts over $3,000. Jim averages $9,650.00 dollars in sales p

How were the Revolutionary efforts of Thomas Paine and Samuel Adams most alike? a. Both wrote in support of the Revolutionary cause. b. Both served as leaders i

Multiple sclerosis is a disease in which the immune system mistakenly destroys some of the myelin wrapped around nerve cell fibers. which nerve cell fibers are

Discuss collaboratively: How would a rate of decay or decay factor affect the outcome in Parts A and B? Explain.

A box is to be constructed from a sheet of cardboard that is 20 cm by 60 cm, by cutting out squares of length x by x from each corner and bending up the sides.

Seasons are celebrations. A year's a Ferris wheel. Both honor our world's habit of spinning 'round a star. Which one of the following sentences best ex

How do I use the Distributive Property to write a numerical expression that is equivalent to 25 + 10 ?

The most violent political change in Eastern Europe took place in 1989 with the revolutionary overthrow and execution of Nicolae Ceausescu of _________. A. Al

Suppose you are saving money for a new cell phone. At week 0 you have $20 and at week 10 you have $100. If y represents the amount of money you have saved and x

ATP is the nucleic acid that A. Transports energy B. Synthesizes proteins C. Stores genetic information D. None of the above