Multiple Choice
Suppose Community Bank offers to lend you $10,000 for one year at a nominal annual rate of 8.00%,but you must make interest payments at the end of each quarter and then pay off the $10,000 principal amount at the end of the year.What is the effective annual rate on the loan?
A) 8.24%
B) 8.45%
C) 8.66%
D) 8.88%
E) 9.10%
Correct Answer:
Verified
Correct Answer:
Verified
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