Your bank offers to lend you money at a 10 percent nominal, or stated, rate on a one-year loan. The loan is a discount loan. How much would you have to borrow to have the use of $10,000?
2007-02-23 03:58:21 · 3 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
I'm assuming you mean that you'd have to pay back $10,000 at the end of one year, paying 10% on the loan. Here's the answer:
FV= $10,000
n=1
i=10%
pmt=$0
Solve for PV, and you'll get $9,091.91.
2007-02-23 04:06:40 · answer #1 · answered by Marko 6 · 0⤊ 0⤋
With todays low fees of pastime, 10 % is outragous. keep around. 10k at 10 % for a twelve months could be money of very almost $a million,000 a month. in case you are able to locate the money for that for a private loan fee, in simple terms shop the $one thousand a month for 10 months, then get what you %. you will shop over $a million,000
2016-12-17 17:07:57 · answer #2 · answered by andie 4 · 0⤊ 0⤋
Absolutely ZERO for ME... for I would never borrow money at 10%. High 7% would be the most I would ever consider doing and even then if I were in a certain mood, I would tell them to stick it.
: )
Happy Friday !
2007-02-23 04:18:42 · answer #3 · answered by Kitty 6 · 0⤊ 0⤋