The Credit Company offers to loan a college student $6300 for school expenses. R
ID: 1193180 • Letter: T
Question
The Credit Company offers to loan a college student $6300 for school expenses. Repayment of the loan will be in monthly installments of $266.73 for 30 months. The total repayment of money is $8,001.90, which includes the orginal $6300, $1248.01 in interest charges, and $453.89 for a required life insurace policy covering the amount of the loan. Asume monthly compounding of interest. What nominal interest rate is being charged on this loan? The nominal interest rate that is being charged on this loan is ..........% per year?
Explanation / Answer
Answer:
The nominal interest rate that is being charged on this loan is 9.07% per year.
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