A finance company offers a "3% plan". The cost of a one-year loan is 3%,...
90.2K
Verified Solution
Link Copied!
Question
Accounting
A finance company offers a "3% plan". The cost of a one-year loan is 3%, and this cost is added to the loan. This total is then divided by 12 to get the monthly payments. Calculate the effective interest rate being charged for a loan of $8,000.
5.63% per year
4.68% per year
5.49% per year
0.46% per month
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!