In: Economics
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
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%