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- https://biz.libretexts.org/Workbench/MGT_1010/10%3A_Book-_Finance_Banking_and_Money/10.04%3A_Interest_Rates/10.4.04%3A_Pricing_Debt_InstrumentsFor example, a simple loan of $1,000 for one year at 3.5 percent would require the borrower to repay $1,035.00 (1000× 1.035), while a simple loan at the same rate for two years would require a payment...For example, a simple loan of $1,000 for one year at 3.5 percent would require the borrower to repay $1,035.00 (1000× 1.035), while a simple loan at the same rate for two years would require a payment of $1,071.23 (1000 × 1.035 2 ). (Note that the correct answer is not just $35 doubled due to the effects of compounding or capitalizing the interest due at the end of the first year.)
- https://biz.libretexts.org/Courses/Prince_Georges_Community_College/BMT_1620%3A_FINANCIAL_PLANNING_AND_INVESTMENTS_(COOKS_2021)/21%3A_Interest_Rates/21.04%3A_Pricing_Debt_InstrumentsFor example, a simple loan of $1,000 for one year at 3.5 percent would require the borrower to repay $1,035.00 (1000× 1.035), while a simple loan at the same rate for two years would require a payment...For example, a simple loan of $1,000 for one year at 3.5 percent would require the borrower to repay $1,035.00 (1000× 1.035), while a simple loan at the same rate for two years would require a payment of $1,071.23 (1000 × 1.035 2 ). (Note that the correct answer is not just $35 doubled due to the effects of compounding or capitalizing the interest due at the end of the first year.)
- https://biz.libretexts.org/Bookshelves/Finance/Book%3A_Finance_Banking_and_Money/04%3A_Interest_Rates/4.04%3A_Pricing_Debt_InstrumentsFor example, a simple loan of $1,000 for one year at 3.5 percent would require the borrower to repay $1,035.00 (1000× 1.035), while a simple loan at the same rate for two years would require a payment...For example, a simple loan of $1,000 for one year at 3.5 percent would require the borrower to repay $1,035.00 (1000× 1.035), while a simple loan at the same rate for two years would require a payment of $1,071.23 (1000 × 1.035 2 ). (Note that the correct answer is not just $35 doubled due to the effects of compounding or capitalizing the interest due at the end of the first year.)
