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Question
Venus Inc. recently borrowed $750,000 from its bank at a simple interest rate of 10 percent. The loan is for six months. The loan agreement requires the interest to be added to the amount borrowed and the total amount to be repaid in monthly installments. What is the loan's effective annual rate (EAR)?
a. 18.18%
b. 17.50%
c. 18.32%
d. 14.12%
e. 16.94%
Answer
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Related questions
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