Question: A small company that makes modular bevel gear drives with a tight swing ratio for optimizing pallet truck design was told that the interest rate

A small company that makes modular bevel gear drives with a tight swing ratio for optimizing pallet truck design was told that the interest rate on a mortgage loan would be an effective 4% per quarter, compounded monthly. The owner was confused by the terminology and asked you to help. What are

(a) The APR and

(b) The APY?

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