Commonwealth Bank has told your friend that the monthly payments he will makeare$400.However,the bank hasnotrevealedthe interestrateitusedtocalculatethispayment.It did

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Commonwealth Bank has told your friend that the monthly payments he will makeare$400.However,the bank hasnotrevealedthe interestrateitusedtocalculatethispayment.It did state that all loans are calculated using monthly compounding.

(a)What is the annual nominal interest rate on this loan? (2 marks)

(b) What is the effective annual rate? (2 marks)

Related Book For answer-question

Contemporary Business Mathematics with Canadian Applications

ISBN: 978-0133052312

10th edition

Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs

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Posted Date: Feb 20, 2024 09:56 AM

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Commonwealth Bank has told your friend that the monthly payments he will makeare$400.However,the bank hasnotrevealedthe interestrateitusedtocalculatethispayment.It did

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Contemporary Business Mathematics with Canadian Applications

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