Calculator Problem – 11/19/2012

What is the effective interest rate of a $100,000 loan at 12.5% with 3 points added into the loan over a six month term if it compounds monthly and has no payments?

(The answer will be posted with the new calculator problem in 2 weeks. Or if you can’t wait that long, you can go to http://www.facebook.com/pages/Gary-Johnston-Seminars/111368472221424 for the answer.)

(N=36,I=22,PV= -100,000,PMT=1000) FV = $141,966.48