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    Effective rate of interest on installment loan

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    Vroom Motorcycle Company is borrowing $30,000 from First State Bank. The total interest charge is $9,000. The loan will be paid by making equal monthly payments for the next three years. What is the effective rate of interest on this installment loan?

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    Vroom Motorcycle Company is borrowing $30,000 from First State Bank. The total interest charge is $9,000. The loan will be paid by making equal monthly payments for the next three years. What is the effective rate of interest on this installment loan?

    Note: the abbreviation have the ...

    Solution Summary

    The solution calculates effective rate of interest on an installment loan.

    $2.19