Multiple Choice
Suppose Community Bank offers to lend you $10,000 for one year at a nominal annual rate of 17.75%,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) 21.43%
B) 19.73%
C) 20.10%
D) 18.97%
E) 16.50%
Correct Answer:
Verified
Correct Answer:
Verified
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