Determine effective annual interest rate on short term loan

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Question: How would the effective annual interest rate for Problem change if the bank charged $1,000 in closing costs?

Problem: Determine the effective annual interest rate on a $100,000 short-term loan, with a term of 245 days and a nominal interest rate of 8%. The bank discounts the interest.

Reference no: EM131518222

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Determine effective annual interest rate on short term loan : How would the effective annual interest rate for Problem change if the bank charged $1,000 in closing costs?
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