You borrow 25000 from the bank and agree to repay the loan, Ask an Expert

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You borrow $25,000 from the bank and agree to repay the loan over the next 3-years in 36 equal monthly instalments of $800. However, the bank also charges you a loan initiation fee of $1,000, which is taken out of the initial proceeds of the loan. What is the effective annual interest rate on the loan, taking account of the impact of the initiation fee?

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Financial Management, Finance

Category:- Financial Management
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