Approximate rate of interest on percent add-on loan, Finance Basics

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Approximate rate of interest on percent add-on loan

Coverall Carpets Inc. is planning to borrow $12,000 from the bank. The bank offers the choice of a 12 percent discount interest loan or a 10.19 percent add-on, one-year installment loan, payable in 4 equal quarterly payments. What is the approximate (nominal) rate of interest on the 10.19 percent add-on loan?

a. 5.10%

b. 10.19%

c. 12.00%

d. 20.38%

e. 30.57%

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Finance Basics: Approximate rate of interest on percent add-on loan

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Finance Basics: Approximate rate of interest on percent add-on loan

Reference No:- TGS044080

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Affect the reliability of evidence

Q : Responsibility for the financial statements under audit

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Finance Basics: Approximate rate of interest on percent add-on loan

Reference No:- TGS044080

Recent Questions Asked Finance Basics

Q : Affect the reliability of evidence

Q : Responsibility for the financial statements under audit

Q : Estimating net present value of investment

Q : Aicpas code of professional conduct

Q : Approximate rate of interest on percent add-on loan

Q : Cost of using additional trade credit

Q : Relevant cost to the firm for taking project

Q : Wacc of johnson industries

Q : Determining the opportunity cost of capital

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