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Answer to Question #74 in Finance for sha26ron
Question #74
What is the effective monthly rate over 7.3 years on a loan whose compound monthly rate is 5.475%?
Expert's answer
You have to calculate your compound interest rate for 7.3 years. Then you have to divide it on number of months (7.3*12). So correct answer is:
[(1+0,05475)^(7.3*12)]/(7.3*12) = 0,217 (or 21,7%)
[(1+0,05475)^(7.3*12)]/(7.3*12) = 0,217 (or 21,7%)
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#339914 on Dec 2023
#339914 on Dec 2023
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