Question
15. A loan is taken out for $10,000 for expansion purposes.The loan is to be paid back at the end of 2 years, but quarterly
15. A loan is taken out for $10,000 for expansion purposes.The loan is to be paid back at the end of 2
years, but quarterly interest must be paid amounting to $330 - every 3 months. What is the true,
effective annual interest rate on this transaction? [4]
a.3.30%b. 13.20%c. 15.30%d. 13.87%e. 14.05%
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Financial Accounting
Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M
5th Canadian edition
9781259105692, 978-1259103285
