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Unformatted text preview: (discount interest) 92,000 With a financial calculator, enter n = 1, PV = 92000, pmt = 0, and FV = 100000 to solve for i = 8.6957% 8.7%. 3. If the loan is a discount loan, and a compensating balance is also required, then the effective rate is calculated as follows: Amount borrowed = 1 . 08 . 1 000 , 100 $ = $121,951.22. 0 1   i = ? 121,951.22 121,951.22  9,756.10 (discount interest) 12,195.1212,195.12 (compensating balance) 109,756.10 100,000.00 With a financial calculator, enter n = 1, PV = 100000, pmt = 0, and FV = 109756.10 to solve for i = 9.7561% 9.76%. Mini Case: 27 30...
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 Spring '08
 Staff
 Interest

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