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Quarter-end payments of $1,550 are made for 9 years to settle a loan of $40,300. What is the effective interest rate charged on this loan?

User Crouzilles
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Final answer:

The effective interest rate can be calculated using the quarter-end payments, the number of payments, and the total loan amount, which typically involves setting up an amortization schedule or using a financial calculator.

Step-by-step explanation:

The question asks to determine the effective interest rate charged on a loan when the loan terms include quarter-end payments of $1,550 over 9 years to settle a loan of $40,300. The effective interest rate can be found by setting up an amortization schedule or using a financial calculator to solve the rate given the payment amount, number of payments, and loan amount.

A precise explanation would provide the formula for calculating the effective interest rate and even a step-by-step calculation using the given values. However, without additional context or specific formulae, a direct calculation is not feasible in this response.

User Ewdlam
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