Calculate the effective annual rate on each of the following loans: a. A $ 5,000 loan for

Question:

Calculate the effective annual rate on each of the following loans:
a. A $ 5,000 loan for two years, 10 percent simple annual interest, with principal repayment at the end of the second year
b. A $ 5,000 loan for two years, 10 percent add on interest, paid in 24 equal monthly installments
c. A $ 5,000 loan to be repaid at the end of two years, 10 percent Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...