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sp2606 [1]
3 years ago
5

Loan amount: 13000

Mathematics
1 answer:
Fofino [41]3 years ago
5 0

Answer:

  5.1%

Step-by-step explanation:

The proceeds of the loan are ...

  13000 -625 = 12375

The amount repaid is 13000. That amount is ...

  13000/12375 = 1.05050505...

times the proceeds. So, the effective interest rate is ...

  1.05051 -1 = 5.051% ≈ 5.1%

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