What Is the Nominal Rate of Interest If a Six-Year

question 20

Essay

What is the nominal rate of interest if a six-year loan of $71 000.00 is repaid by monthly payments of $1701.58?

---

Definitions:

Economist

A professional or expert in economics, studying the production, distribution, and consumption of goods and services.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment’s cost.

Price-taker Market

A market situation where buyers and sellers accept the prevailing market price as they individually have no influence over it.

Short-run Market Supply

The total quantity of a good that producers are willing and able to sell at a given price over a short period.