Multiple Choice
Suppose a bank offers to lend you $10,000 for one year at a nominal annual rate of 10.25%,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) 7.76%
B) 8.63%
C) 9.59%
D) 10.65%
Correct Answer:
Verified
Correct Answer:
Verified
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