Fin 3320 exam 2 - Study guides, Class notes & Summaries

FIN 3320 Exam 2 | Questions with complete solutions Suppose United Bank offers to lend you $10,000 for one year at a nominal annual rate of 8.00%, but you must make interest payments at the end of each quarter and then pay off the $10,000 principal amount at the end of the year. What is the effective annual rate on the loan? a 8.24% b 8.45% c 8.66% d 8.88% e 9.10% You sold a car and accepted a note with the following cash flow stream as your payment. The effective price you received for the ca...