CORRECT ANSWER D. THE EFFECTIVE ANNUAL INTEREST RATE COST IS 13...
178.
Correct answer d. The effective annual interest rate cost is 13.9% as shown below.
Effective interest rate
=
(.03 ÷ .97) x (360 ÷ 80)
=
13.9%
178.
Correct answer d. The effective annual interest rate cost is 13.9% as shown below.
Effective interest rate
=
(.03 ÷ .97) x (360 ÷ 80)
=
13.9%