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gewusel gewusel
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6 years ago
Note: The calculations for this question were done using Excel's RATE function.
What is the rate of interest compounded quarterly if a loan of $31 500.00 is repaid in seven years by payments of $2712.00 made at the end of every six months?
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Contemporary Business Mathematics with Canadian Applications

Contemporary Business Mathematics with Canadian Applications


Edition: 11th
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wrote...
6 years ago
Nper 14
Pmt -2712.00
PV 31500.00
Result 0.0259414
f = (1 + 0.0259414).5 - 1 = .0128877
The nominal annual rate is 1.28877 * 4 = 5.15506%
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