The market interest rate that equates the proceeds from a loan with the present value of...
The market interest rate that equates the proceeds from a loan with the present value of the loan payment is called
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imputed interest rate. |
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effective interest rate. |
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nominal interest rate. |
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agreed upon interest. |
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coupon interest. |
Homework Answers
Effective Interest rate is the rate by which the discounted payments from proceeds of loan the present value of the loan.
Thus if proceeds from loan is discounted by this rate it will equal to the amount of loan.
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