Mary Ott is going to borrow $14,600 for 45 days and pay $185 interest. What is...

Question

Question

Answer 1

Answer #1

Calculating EAR,

14,600 + 185 = 14,600(1 + r)^45/360

r = 10.60%

So,

Effective Annual Rate = 10.60%

Answer 2

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