Lecture Notes on Time Value of Money

2. a. What rate of interest [APR] is the bank charging you if you borrow $77,650 and must repay $80,000 at the end of 2 quarters, if interest is compounded quarterly? Answer: 6.0% APR . b. What rate of interest [APR] is the bank charging you if you borrow $49,000 and must repay $50,000 at the end of 3 months, if interest is compounded monthly ... ................
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