annual return on its consumer loans of 17.1 percent per year. The bank uses daily compounding on its loans. What interest rate is the bank required by law to report to potential borrowers? Explain why this rate is misleading to an uninformed borrower. (See solution in the attached solution) Use above example, please solve the following: ABC Corp. wants to earn an effective annual return on its consumer loans of 20 percent per year. The bank uses daily compounding on its loans. What interest rate is the bank required by law to report to potential borrowers? Explain why this rate is misleading to an uninformed borrower. Q10: Example: Calculating Present Values: A five-year annuity of 10 $5,900 semiannual payments will begin 9 years from now, with the first payment