Question:

Aza borrowed $$10,000\mathrm{.}003$ years ago at $7\mathrm{.}53\%$ compounded annually. Due to an

accident, Aza was unable to make any payments. Aza is hoping to refinance the loan.

They hope to pay off the loan in the next $5$ years with biweekly payments of

$$134\mathrm{.}10.$ What is the highest interest rate that should be charged on the loan, if

interest is compounded quarterly?

Calculation:

$1-$ rate per payment period

$2-$rate per compounding period

$3-$ nominal annual interest rate

$4-$effective rate