Papa bank offers to lend you RM 100,000 at a nominal rate of 5.0%, with interest paid
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Question:
Papa bank offers to lend you RM 100,000 at a nominal rate of 5.0%, with interest paid quarterly. Mama Bank offers to lend you the RM 100,000, but it will charge 6.0%, with interest paid at the end to the year. Compute the difference in the effective annual rates charged by these two bank.
Related Book For
Managerial Economics Foundations of Business Analysis and Strategy
ISBN: 978-0078021718
11th edition
Authors: Christopher Thomas, S. Charles Maurice
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