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Determine the real interest rate that the company must pay

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Question - Due to lack of liquidity, a company needs a short-term loan of $2,500 to be able to buy its merchandise. It goes to a financial intermediary which offers a rate of 2.25% per month and also stipulates a commission of 4% for a term of 4 months. With this previous information, determine the real interest rate that the company must pay.

Reference no: EM133121464

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