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Rahul needs a loan and is speaking to several lending agencies about the interest rates...

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Accounting

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 4%. But the bank is compounding bimonthly
(every two months). What is the effective interest rate that Rahul
would pay for the loan?3.945%4.188%4.250%4.067%Another bank is also offering favorable terms, so Rahul decides
to take a loan of $12,000 from this bank. He signs the loan
contract at 5% compounded daily for 12 months. Based on a 365-day
year, what is the total amount that Rahul owes the bank at the end
of the loans term? (Hint: To calculate the number of days, divide
the number of months by 12 and multiply by 365.)$12,362.91$13,056.74$12,615.21$13,119.82

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