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MATH SOLVE
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21.What is the effective rate paid for a bank loan of $300,000 that was agreed upon at 18% annual in...
4 months ago
Q:
21.What is the effective rate paid for a bank loan of $300,000 that was agreed upon at 18% annual interest convertible quarterly?
Accepted Solution
A:
${\left( 1+0.045 \right)}^{4}-1$
${1.045}^{4}-1$
${\left( \frac{ 209 }{ 200 } \right)}^{4}-1$
$\begin{align*}&\frac{ {209}^{4} }{ {200}^{4} }-1 \\&\approx0.192519\end{align*}$