Multiple Choice
Suppose Community Bank offers to lend you $10,000 for one year at a nominal annual rate of 19.50%,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) 19.71%
B) 15.94%
C) 22.02%
D) 20.97%
E) 17.62%
Correct Answer:
Verified
Correct Answer:
Verified
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