Multiple Choice
Suppose People's bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $250.00 at the end of each quarter and then pay off the principal amount at the end of the year.What is the effective annual rate on the loan?
A) 8.46%
B) 8.90%
C) 9.37%
D) 9.86%
E) 10.38%
Correct Answer:
Verified
Correct Answer:
Verified
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