4.(Using Excel) Suppose that you initially borrowed $100,000, made 5 annual payments of $11,000 and owe...
4.(Using Excel) Suppose that you initially borrowed $100,000, made 5 annual payments of $11,000 and owe the lender $98,000. What was the effective interest rate on this loan?
Homework Answers
Effective rate can be calculated using I/Y function on a calculator
N = 5, PMT = 11,000, PV = -100,000, FV = 98,000
=> Compute I/Y = 10.68% is the effective interest rate on this loan.
Add Answer to:
4.(Using Excel) Suppose that you initially borrowed $100,000,
made 5 annual payments of $11,000 and owe...
(Excel) Suppose that you initially borrowed $100,000, made 5 annual payments of $11,000 and owe the...
(Excel) Suppose that you initially borrowed $100,000, made 5 annual payments of $11,000 and owe the lender $98,000. What was the effective interest rate on this loan? (please setup and solve in excel. Show relevant formulas, thank you :) )
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