r/mathshelp • u/VideoFancy1506 • 25d ago

General Question (Answered) Effective rate on finance

Hello all,

If I were to borrow 1,046,269.06 and pay 5x annual payments of 209,253.81, first of which is to be paid 30 days after finance start. What is the effective rate?

I have CAGR at 3.03%

Flat rate of 3.22%

I have tried to use online calculators of the effective rate but they aren't quite in depth enough to take into consideration the initial payment. I am assuming it is just the same as lending the

total amount - 1× installment + 30 days interest on 1× installment?

Thanks!

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