Loan Amortization

12% daily compounding = 12.75%. EAR versus APR. Suppose you go Vito, a local loan shark, to inquire about the interest rate on loans. You are told the interest will be a 5 percent discount loan. If you borrow $1,000 for one month, the net interest will owe will be: $1,000(1 + .05)4 – $1,000 = $215.51. ................
................