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Question 2 a. What is a discounted loan? b. Why is the stated rate of interest and the effective rate of interest different? Which best

image text in transcribed Question 2 a. What is a discounted loan? b. Why is the stated rate of interest and the effective rate of interest different? Which best reflects the true cost of borrowing? c. Suppose a bank agrees to give you a $5,000 simple interest loan and you agree to pay $5,750 in one year. What is the effective interest rate

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