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Juliette [100K]

2 years ago

11

If an instalment plan quotes a monthly interest rate of 4%, the effective annual/yearly interest rate would be _____________. 4%

Between 4% and 48% 48% More than 48%

1 answer:

notka56 [123]2 years ago

4 0

Answer:

More than 48%

Explanation:

If the interest is computed monthly on the outstanding balance, it has an effective annual rate of ...

(1 +4%)^12 -1 = 60.1% . . . . more than 48%

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