Effective Annual Rate a Loan Is Offered with Monthly Payments

question 133

Multiple Choice

Effective Annual Rate A loan is offered with monthly payments and a 10 percent APR.What is the loan's effective annual rate (EAR) ?

• A)10.00 percent
• B)10.47 percent
• C)11.20 percent
• D)12.67 percent

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Definitions:

Tangible Product

Physical items that can be seen, touched, and owned, as opposed to services or digital goods.

Unlimited Demand

A theoretical concept where the desire for a product or service exceeds any constraints, such as availability or price, leading to infinite demand.