Chapter 3 Equivalence A Factor Approach - Oxford University Press
interest, compounded quarterly. What is the effective interest rate? Solution i = 8/4 = 2% n = (4)(15) = 60 Effective interest rate = (1 + .02)4 - 1 = 8.24% 3-24 Suppose you wanted to buy a $180,000 house. You have $20,000 cash to use as the down payment. The bank offers to loan you the remainder at 6% nominal interest. ................
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