You borow $345,000 add on interest loan from credit union and will repay in equa

Question

You borow $345,000 add on interest loan from credit union and will repay in equal installments over 12 years. the nominal rate of interest is 4.75 percent. assuming daily payment and simple rate of interest, obtain the annual percentage rate

A. 8.12% B 8.32% C 8.52% D 8.72% You borow $345,000 add on interest loan from credit union and will repay in equal installments over 12 years. the nominal rate of interest is 4.75 percent. assuming daily payment and simple rate of interest, obtain the annual percentage rate

A. 8.12% B 8.32% C 8.52% D 8.72% You borow $345,000 add on interest loan from credit union and will repay in equal installments over 12 years. the nominal rate of interest is 4.75 percent. assuming daily payment and simple rate of interest, obtain the annual percentage rate

A. 8.12% B 8.32% C 8.52% D 8.72%

Explanation / Answer

loan amount = $345000

interest rate = 4.75

no of installment = 144

amount of interest = annual interest rate /365 * length of the loan * amount of loan

= 4,75/365 *4380 * 345000

= 19665000

cost of loan = amount of interest + fee

annual cost of loan (%) = cost of loan / borrowed amount /length of the loan * 365 days

= 19665000/345000/4380 * 365

= 4.75 %

so the correct answer is 4.75 %.

given answer are wrong.

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