To increase its market share, Sole Brother Inc.decided to
Chapter , Problem 12-15(choose chapter or problem)
To increase its market share, Sole Brother Inc.decided to borrow $50,000 from its banker for thepurchase of newspaperadvertising for its shoe retailline. The loan is to be paid in four equal annualpayments with 15% interest. The loan is discounted12 points. The first 6 points are an additionalinterest charge of 6% of the loan, deducted immedi-ately.This additionalinterest6%(50,000)=$3000means the actual amount received from the $50,000loan is $47,000. Another 6 points or $3000 of addi-tional interest is deducted as four $750 additionalannualinterestpayments.Whatis the after-tax inter-est rate on this loan
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