Question: A farmer needs to borrow $2,333.92. The local PCA will make a 2-year loan fully amortized at 12% with quarterly payments. A $10 dollar loan

A farmer needs to borrow $2,333.92. The local PCA will make a 2-year loan fully amortized at 12% with quarterly payments. A $10 dollar loan fee and stock purchase is required. There is a 4% stock requirement. (i) What is the actuarial rate? b. 3.03% a. 15.2%. c.12.55% Enter Response Here: (ii) What is the APR? a. 3.80% c. 12.55% Enter Response Here: a.15.2% c. 3.80% d. 3.80% (iii) What is the effective rate? b. 12.70% Enter Response Here: b. 12.14% d. 15.2% d. 12.55%

A farmer needs to borrow $2,333.92. The local PCA will make a 2 -year loan fully amortized at 12% with quarterly payments. A $10 dollar loan fee and stock purchase is required. There is a 4% stock requirement. (i) What is the actuarial rate? a. 15.2%. b. 3.03% c. 12.55% d. 3.80% Enter Response Here: (ii) What is the APR? a. 3.80% b. 12.14% c. 12.55% d. 15.2% Enter Response Here: (iii) What is the effective rate? a.15.2\% b. 12.70% c. 3.80% d. 12.55% Enter Response Here

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