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Please answer 3a & b and show your work. Thank you!! QUESTION 3 A) A commercial bank offers a loan at the stated rate of

Please answer 3a & b and show your work. Thank you!! image text in transcribed
QUESTION 3 A) A commercial bank offers a loan at the stated rate of 6% annual. The bank requires that you make quarterly payment towards your loan. What is the effective rate the bank is charging on the loan? B) You have an opportunity to invest in a product that provides 12% annual rate of return. The anticipated inflation for the year is 7%. What is the real rate of return that you would realize from investing in this product

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