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    Foundations of Financial Management Study Set 1
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    Exam 8: Sources of Short-Term Financing
  5. Question
    Monthly Instalment Loans Usually Increase the Effective Rate of Borrowing
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Monthly Instalment Loans Usually Increase the Effective Rate of Borrowing

Question 20

Question 20

True/False

Monthly instalment loans usually increase the effective rate of borrowing by approximately 2 times the stated rate.

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