What monthly rate on interest is the loan company charging

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Reference no: EM13148598

Antonio Menifee borrowed money from a bank to finance a small fishing boat. The bank's terms allowed him to defer payments(including interest) on a loan for 6 months and to make 36 equal end-of-month payments thereafter. The original bank note was for $16,000 with an interest rate of 9% compunded monthly. After 16 monthly payments Antonio found himself in a financial blind and went to a loan company for assistance in lowering his monthly payments. Fortunately, the comnpany offered to pay his debts in one lump sum if he would pay the company $308.29 per month for the next 36 months. What monthly rate on interest is the loan company charging on his transaction?

Reference no: EM13148598

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