Note: the Calculations for This Question Were Done Using Excel's

question 40

Essay

Note: The calculations for this question were done using Excel's RATE function.
What is the effective annual rate of interest on a loan of $9200.00 repaid in semi-annual installments of $810.00 in nine years?

---

Definitions:

Economy Of Scale

The cost advantage achieved by companies when production becomes efficient, as fixed costs are spread out over more units of output.

High Shrinkage

A term used in retail to describe a higher than normal reduction in inventory due to factors like theft, damage, or errors.

Prices

A term referring to the amount of money required to purchase a good or service; it is determined by factors such as demand, supply, and production costs.

Reasonable Product

A product considered to meet a satisfactory standard in terms of quality, functionality, and price.