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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