IDNLearn.com offers a comprehensive solution for finding accurate answers quickly. Get step-by-step guidance for all your technical questions from our knowledgeable community members.
Sagot :
Answer:
6.17%
Explanation:
The monthly rate of return on the loan is the monthly interest payment on the loan which is $50 divided by the principal amount borrowed.
The monthly rate of interest =$50/$10,000
The monthly rate of interest =0.50%
However, the effective annual rate is the rate of interest on the loan from an annual basis perspective using the formula below:
effective annual rate=(1+monthly interest rate)^n-1
monthly interest rate=0.50%
n=12(the number of monthly compounding in a year is 12)
effective annual rate=(1+0.50%)^12-1=6.17%
We appreciate every question and answer you provide. Keep engaging and finding the best solutions. This community is the perfect place to learn and grow together. Thank you for choosing IDNLearn.com. We’re committed to providing accurate answers, so visit us again soon.
