Glossary of financial terms with examples of calculation
In the USA and Europe, banks and credit card companies are required by law to show the APR in all advertising and promotional material for their lending products. Amount borrowed = $10,000 . Period of loan = 36 months or 3 years. Interest rate = 12% . Interest cost per year = $10,000 x 12% = $1,200. Arrangement fee payable at start $500 ................
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