Multiple Choice
Harris Flooring Inc.is planning to borrow $12,000 from the bank for new sanding machines.The bank offers the choice of a 12 percent discount interest loan or a 10.19 percent add-on, one-year installment loan, payable in 4 equal quarterly payments.What is the effective rate of interest on the 12 percent discounted loan?
A) 10.7%
B) 12.0%
C) 12.5%
D) 13.6%
E) 14.1%
Correct Answer:
Verified
Correct Answer:
Verified
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