Multiple Choice
Toronto Skaters Company is being offered a one-year variable rate loan at a rate of prime + 0.75%.The loan is to be paid in quarterly installments and there are no other fees associated with it.The prime lending rate is currently 6% compounded quarterly.What is the effective annual cost of this loan?
A) 6%
B) 6.14%
C) 6.75%
D) 6.92%
Correct Answer:
Verified
Correct Answer:
Verified
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