Explain when you should use the: nominal rate (INOM), periodic rate (IPER), effective annual rate (EFF%), and annual percentage rate (APR). Can you think of a more useful rate than the APR that should be reported on all contracts? If so, how would you calculate that rate?
Explain when you should use the: nominal rate (INOM), periodic rate (IPER), effective annual rate (EFF%), and annual percentage rate (APR). Can you think of a more useful rate than the APR that should be reported on all contracts? If so, how would you calculate that rate?
Chapter9: Projecting Financial Statements
Section9.5: Percent-of-sales Projected Financial Statements
Problem 4CC
Question
Explain when you should use the: nominal rate (INOM), periodic rate (IPER), effective annual rate (EFF%), and annual percentage rate (APR). Can you think of a more useful rate than the APR that should be reported on all contracts? If so, how would you calculate that rate?
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