Effective rate of discounted loan

Reference no: EM1334266

Discount Loan. A discount bank loan has a quoted annual rate of 6 percent.

a) What is the effective rate of interest if the loan is for 1 year and is paid off in one payment at the end of the year?

b) What is the effective rate of interest if the loan is for 1 month?

Reference no: EM1334266

Questions Cloud

Human resource development transfer of training : Can anyone tell me what exactly is the "Baldwin,T & Ford,K" of Model designed in 1988 and is related to Human Resource Development Transfer of Training?

Explaining creative-scientific and persuasive thinking : Analyze and explain the following three different types of thinking styles: Creative, Scientific, and Persuasive Thinking.

Important information about career development plan : Using the Electronic Reserve Readings (ERR), Internet, and/or additional resources - prepare a five-year career development plan for a credit card company call center

Explain communication coaching in the workplace : Explain Communication coaching in the workplace- Practical ideas and What are your strengths and weaknesses as a presenter

Effective rate of discounted loan : What is the effective rate of interest if the loan is for 1 year and is paid off in one payment at the end of the year? What is the effective rate of interest if the loan is for 1 month?

Scheduling of resources is an important task : Scheduling of Resources - Show your feelings about why the scheduling of resources is an important task.

Measure of central location for data : Is the mean, median, or mode the most appropriate measure of central location for these data?

Allocation of interest costs : The Hassan Corporation has an Electric Mixer Division and an Electric Lamp Division. What amount of interest costs should be allocated to Electric Lamp Division?

Making the business decision to expand : What aspects must be considered before making the business decision to expand and What capabilities do transnational organizations need to develop to function effectively in multiple environments?

User Account

All Pages