contestada

Andrew is choosing between four loans. Loan P has a nominal rate of 10.393%, compounded daily. Loan Q has a nominal rate of 10.516%, compounded weekly. Loan R has a nominal rate of 10.676%, compounded monthly. Loan S has a nominal rate of 10.755%, compounded annually. Which loan will give Andrew the best effective interest rate? a. loan P b. loan Q c. loan R d. loan SAndrew is choosing between four loans. Loan P has a nominal rate of 10.393%, compounded daily. Loan Q has a nominal rate of 10.516%, compounded weekly. Loan R has a nominal rate of 10.676%, compounded monthly. Loan S has a nominal rate of 10.755%, compounded annually. Which loan will give Andrew the best effective interest rate? a. loan P b. loan Q c. loan R d. loan S

Respuesta :

Answer:

D as in Drink

Loan S as a Snake

Step-by-step explanation:

The loan that offers the lowest effective interest rate is loan P.

What is the effective interest rate?

Effective interest rate is the actual interest rate that is paid on a loan. It takes into effect the compounding.

What loan offers he lowest effect interest rate?

Effective annual rate = (1 + APR / m ) ^m - 1

M = number of compounding

Loan P = (1 + 0.10393/365)^365 - 1 = 10.95%

Loan Q = (1 + 0.10516/52)^52 - 1 = 11.08%

Loan R = (1 + 0.10676 / 12)^12 - 1 = 11.2%

To learn more about the effective annual rate, please check: https://brainly.com/question/4064975

Otras preguntas