Determine the interest on annualized basis


Response to the following problem:

The Consistent Savings and Loan is designing a new account that pays interest quarterly. It wishes to pay, effectively, 16% per year on this account. Consistent desires to advertise the annual percentage rate on this new account, instead of the effective rate, since its competitors state their interest on an annualized basis.

What is the APR that corresponds to an effective rate of 16% for this new account?

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Financial Accounting: Determine the interest on annualized basis
Reference No:- TGS02107243

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