# Real Estate Finance

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If bank wished to earn \$6,300 on a loan over twelve months, what interest rate would the bank have to charge?

• Real Estate Finance -

That depends upon the size of the loan.

• Real Estate Finance -

Oops, I left out the loan amount. It's a \$50,000 loan.

• Real Estate Finance -

I = PRT

6300 = 50,000 * R
6300/50,000 = R
0.126 = 12.6% = R

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