Question
Your bank will lend you $4,400 for 45 days at a cost of $71 interest. a. What is your annual rate of interest? (Use 365
Your bank will lend you $4,400 for 45 days at a cost of $71 interest.
a. What is your annual rate of interest? (Use 365 days in a year. Do not round intermediate calculations. Round the final answer to 2 decimal places.)
Annual rate of interest = 13.09
b. What is your effective annual rate? (Use 365 days in a year. Do not round intermediate calculations. Round the final answer to 2 decimal places.)
Effective annual rate = ???
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
9th Edition
0324656122, 978-0324656121
