Rahul needs a loan and is speaking to several lending agencies about the interest rates...
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Rahul needs a loan and is speaking to several lending agencies about the interest rates they would charge and the terms they offer. He particularly likes his local bank because he is being offered a nominal rate of 14%. But the bank is compounding daily. What is the effective interest rate that Rahul would pay for the loan? 14.883%15.145%15.024%15.201% Another bank is also offering favourable terms, so Rahul decides to take a loan of $11,000 from this bank. He signs the loan contract at 6% You need to first convert the interest rate to daily, and then solve for the number of days. Since four months is 1/3 of a year, multiply 1/3 by 365. ) $10,885.53$11,222.20$11,614.98$11,783.31
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