Credit Company wants to earn an effect annual return on its consumer loans of 14.25% per...
Credit Company wants to earn an effect annual return on its consumer loans of 14.25% per year. The bank uses daily compounding on its loans. What interest rate is the bank required by law to report to potential borrowers? Please show all answers and calculations.
Homework Answers
Required Effective Annual Rate = 14.25%
APR(Daily) = 365[(1.1425)1/365 - 1]
APR(Daily) = 13.32%
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please answer 16,18 and 20
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