How to Borrow Money
How to Borrow Money
83.2K views6 months ago
wikiHowMichael R. Lewis
Calculating Interest Rate. You borrow 1,000 from the bank and agree to repay the loan over the next year in 12 equal monthly payments of 90 . However, the bank also charges you a loan-initiation fee of 20, which is taken out of the initial proceeds of the loan. What is the effective annual interest rate on the loan taking account of the impact of the initiation fee? | Numerade
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