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This question illustrates what is known as discount rate. imagine you are discussing a loan with a somewhat unscrupulous lender. You want to borrow $25,000 for one year. The interest rate is 14.9 percent. You and the lender agree that the interest on the loan will be .149 percent * $25,000= $3,725. So the lender deducts this interest amount from the loan up front and gives you $21, 275. In this case, we say that the discount is $3,725. What is the effective interest rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places.)
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
This report is specific for a core understanding for Financial Accounting and its relevant factors.
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