Revision as of 12:03, 18 November 2023 by Admin (Created page with "'''Solution: E''' Based on the effective yield rate, After one year, the outstanding loan balance is 100 + 8 – 39.03 = 68.97. For the balance to be zero after two years, <math display = "block"> 68.97(1+i)-2(39.03)=0\Rightarrow i=78.06/68.97-1=0.1318=13.29 \% </math> {{soacopyright | 2023 }}")
Exercise
ABy Admin
Nov 18'23
Answer
Solution: E
Based on the effective yield rate, After one year, the outstanding loan balance is 100 + 8 – 39.03 = 68.97. For the balance to be zero after two years,
[[math]]
68.97(1+i)-2(39.03)=0\Rightarrow i=78.06/68.97-1=0.1318=13.29 \%
[[/math]]
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