Asked by MONICA

Determine the comparable interest rate for a $70,000 loan when the quoted information is 10.2% + 0.5 pt + $200. (Round your answer to two decimal places.)
Just need the steps to solve this problem.
Answered by Reiny
your statement
10.2% + .. + $200 makes no sense
you cannot add percentages to dollars
Answered by drwls
The cash that you get from the loan is 70,000 - 200 - 350 = 69,450. Yet you are paying 10.2% = 7140 interest per year. The true interest rate is
7140/69450 = 10.28%
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