Philippa took out a $860 discounted loan for a period of m months and the simple interest rate was 6%. The amount that was actually disbursed into her bank account was $838.50. Calculate the effective interest rate of this loan, to the nearest hundredth of a percent.

Answer rating: 100% (QA)

To calculate the effective interest rate of the loan we can use the formula for the effective intere... View the full answer