Mathematics · Financial Mathematics
Calculate the approximate effective annual Internal Rate of Return (IRR) for a bank on a Flat Rate Personal Loan of ₹100,000 at a 10% flat rate for 12 months, where the processing fee is 2%. (Hint: The borrower pays ₹110,000 in total in 12 equal monthly installments, but receives only ₹98,000 upfront).
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