Multiple Choice
Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $170.00 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) 6.98%
B) 6.07%
C) 6.63%
D) 5.79%
E) 6.21%
Correct Answer:
Verified
Correct Answer:
Verified
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