Effective Rate of Return
I am trying to find the effective rate of return on a loan as follows:
PV $100,000
Life = 10 yrs
First 3 yrs = No Payments
Next 7 yrs = $1,460.86
If I calculate over just 7 years I get 6%, but how do I find the effective
rate of return over the life of the loan?
Thanks!
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