Lecture Notes on Time Value of Money
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? Answer: 8.0% APR . 3. How much must you deposit today in a bank account paying interest compounded monthly: a. ................
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