Question: A borrower wants to take a loan with a maximum effective monthly rate of 1%. What is the maximum APR with quarterly compounding that the

A borrower wants to take a loan with a maximum effective monthly rate of 1%. What is the maximum APR with quarterly compounding that the borrower will accept from a lender? [Financial Calculator will not work] 3(1%)=3% 121%=12% ((1.01)121)=12.6825% 4((1.01)31)=12.1204% (1.01)31=3.031%

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