Question: Questo borrowed $100,000 from a bank on a one-year 8% term loan, with interest compounded quarterly. What is the effective annual interest on the loan?

Questo borrowed $100,000 from a bank on a one-year 8% term loan, with interest compounded quarterly. What is the effective annual interest on the loan?

a. 8%

b. 8.24%

c. 2%

d. 9.12%

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