Question
A bank is considering to offer two different loans which costs the same equivalent interest rate of 10%: 1) One compounds on a quarterly basis.
A bank is considering to offer two different loans which costs the same equivalent interest rate of 10%:
1) One compounds on a quarterly basis.
2) The account compounds on a monthly basis.
This 10% interest rate is called as _________
A- discount rate
B- annual percentage rate
C- effective annual rate
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N Hyman
10th Edition
053875446X, 978-0538754460
