Farmers bank offers to lend you 50000 in a nominal rate of


Farmers Bank offers to lend you 50,000 in a nominal rate of 5% simple interest we dancers pay quarterly. Merchants Bank offers to Lenny 50,000 but it will charge 6% simple interest with the interest rate at the end of the year. What's the difference in the effective annual rate charge by the two banks?

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Business Management: Farmers bank offers to lend you 50000 in a nominal rate of
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