Suppose Community Bank offers to lend you $10,000 for one year at a nominal annual rate of 9.00%, but you must make interest payments at the end of each quarter and then pay off the $10,000 principal amount at the end of the year. What is the effective annual rate on the loan?

		11.45%
		7.26%
		9.40%
		9.31%
		10.70%

Answer rating: 100% (QA)

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