RedOutsiders726 RedOutsiders726

12-09-2022
Business

Answered

A+bank+loan+officer+offers+you+a+loan.+you+agree+to+pay+$16,000+in+interest+plus+repay+the+$175,000+at+the+end+of+one+year.+what+is+the+percent+interest+rate+or+effective+cost?+9.14%

Answer :

Tutorconsortium338 Tutorconsortium338

14-09-2022

The Effective Cost will be 9.14%

Economic study that examines the relative costs and results of various action plans is known as cost-effectiveness analysis.

Cost-effectiveness analysis is different from cost-benefit analysis, which gives the measure of effect a monetary value.

Therefore, 9.1421% is the effective rate

(16000 ÷ 175000 x 100 =
0.091428571 x 100

B). 9.89% is the effective rate. Interest is calculated as follows:

175000 x 9%

The loan's net profit is calculated as 175000 -15750,

which is $ 159,250. Effective rate is determined by: 15,750 ÷ 159250 x100= 9.89%

C) I would like a loan with a 16000 interest payment due at the end of the year based on lower costs.

To Learn more about Effective Cost, Click The Links.

https://brainly.com/question/27403777

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