What Rate of Interest Is Paid If the Interest on a Loan

question 55

Essay

What rate of interest is paid if the interest on a loan of $7300.00 is $692.71 from June 11, 2014 to April 2, 2015?

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Definitions:

Financial Decision Maker

An individual or group responsible for making investment, financing, and dividend decisions within an organization.

Expected NPV

Projected Net Present Value; an estimation of a project's current value based on expected future cash flows discounted at the project's cost of capital.

Efficient Market

A financial market theory suggesting that asset prices fully reflect all available information, making it impossible to consistently achieve higher than average returns.

Insider Trading Laws

Regulations that prohibit the trading of a company's stocks or other securities by individuals with access to non-public, material information about the company.