21C)

A farmer needs to borrow $2,000. The local PCA will make a 3-year loan fully amortized at 12% with semiannual payments. A $15 dollar loan fee and stock purchase is required. There is a 3% stock requirement.

What is the actuarial rate?

a. 14.44% b. 7.22%

c. 12.36% d. None of the answers are correct

What is the APR?

a.12.36% b. 7.22%

c. 14.44% d. None of the answers are correct

What is the effective rate?

a. 12.36% b. 7.22%

c. 14.44% d. None of the answers are correct