Find the effective annual rate on the loan
If a firm borrowed $50,000 at a rate of 9%, simple interest, with monthly interest payments and a 365-day year, what would the effective annual rate on this loan be?
Which Answer is correct?
a) 8.84%
b) 9.02%
c) 9.38%
d) 9.61%
e) 9.99%
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If firm borrowed $50,000 at rate of 9%, simple interest, with monthly interest payments and 365-day year, find the effective annual rate on this loan?
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