Problem
A loan of $3,000 for a new, high-end laptop computer is to be repaid in 15 end-of-month payments (starting one month from now). The monthly payments are determined as follows.
Loan principal $3,000
Interest for 15 months at 1.5% per month 675
Loan application fee 150
Total $3,825
Monthly payment = $3,825/15 = $255
What nominal and effective interest rates per year are actually being paid? Draw a cash-flow diagram from the perspective of the lender
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.