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What is the annual effective rate of interest that you are paying?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 18P

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You borrow $20000 and make an agreement to repay the loan with10 annual payments of 5,000. What is the annual effective rate of interest that you are paying?

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