Do Not Use the Approximation Formula for This Problem

question 106

Multiple Choice

Do not use the approximation formula for this problem.Coverall Carpets Inc.is planning to borrow $12,000 from the bank.The bank offers the choice of a 12 percent discounted interest loan or a 10.19 percent add-on, one-year installment loan, payable in 4 equal quarterly payments.What is the effective rate of interest on the 10.19 percent add-on loan?

• A)9.50%
• B)10.19%
• C)15.22%
• D)16.99%
• E)22.05%

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Definitions:

Ethnic Composition

The makeup or distribution of various ethnic groups within a community, region, or country.

Marketspace

A digital or virtual environment where buying and selling activities occur, facilitated by information technology.

Electronic Commerce

Conducting transactions involving the exchange of goods and services or the movement of funds and data, chiefly over an electronic network like the internet.

Generational Cohorts

Groups of people divided by birth years, who experience similar societal events, technological changes, and cultural shifts, influencing their attitudes, behaviors, and consumer habits.