The
Omega Corp. plans to borrow $10,000 for a 60-day period. At maturity,
Omega will repay the $10,000 principal plus interest at an annual rate
of 12%. What is the effective rate of interest on this loan?
a.12.62%
b.12.13%
c.11.47%
d.11.22%
The effective interest is determined by (1 + (12%/12)) 12 – 1 = 12.68%
a.12.62%
b.12.13%
c.11.47%
d.11.22%
The effective interest is determined by (1 + (12%/12)) 12 – 1 = 12.68%
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