What nominal interest rate is being charged if a loan of $13,500 must be repaid using...

What nominal interest rate is being charged if a loan of $13,500 must be repaid using end of the month equal payments of $ 395over 40 months

Solutions

Expert Solution

Given Information :

Loan Amount (P=Principal)= $13500

Have to repaid using end of the month equal payments of $395 .

Paid over in 40 Months(A)= 395 * 40

= 15800

So Intrest will be = A-P

=15800-13500

= 2300

$2300= 13500*R*40/100

2300/135*40=R

2300/5400=R

R=0.42592592592 0.426%

Rahul Sunny answered 2 years ago

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