What is the effective annual interest rate on this loan

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Reference no: EM13939793

Your company has just taken out a loan for $75,000. The stated interest rate on this loan is 10 percent, but the loan is an add-on loan which will be repaid in 12 equal monthly installments, beginning at the end of the first month. How large are your company's monthly payments?

a. $7,500 b. $5,250 c. $6,250 d. $6,664 e. $6,875

What is the effective annual interest rate on this loan?

a. 10.00%

b. 19.56%

c. 18.00%

d. 10.47%

e. 20.00%

Reference no: EM13939793

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