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In an installment loan, lenders typically charge add-on interest on automobile. The term "add-on" means the interest is calculated and then added to the amount received to determine the loan's face value. For example, for a $10,000 add-on monthly installment loan with 12% nominal rate, you will pay a total interest charge of $1,200. However, since the loan is paid off in monthly installment, you have the use of the full $10,000 for only the first month; then the outstanding balance declines by $10,000/12=$833.33 per month. Therefore, your monthly installment payment will be $933.33 ($1,200/12+$833.33). What is your effective annual rate?
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 ..
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