FIN-650 Module 1 DQ 2 – Problem 4-23 – Effective Rate of Interest
Managerial Finance – Overview of Financial Management and Time Value of Money
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This discussion thread will be used to discuss the practice problems completed in this module. After completing the problems, submit your answers to the instructor. Your instructor will specify which problems will be reviewed for discussion. Post your answers to the posted problem to this discussion thread and discuss any challenges you had with completing the problems, tips that helped you arrive at the correct answers, and/or questions you may still have.
Problem 4-23 – Effective Rate of Interest
A mortgage company offers to lend you $85,000; the loan calls for payments of $8,273.59 at the end of each year for 30 years. What interest rate is the mortgage company charging you?
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