Ask Question
22 June, 16:27

Mr. miser loans money at an annual rate of 15 percent. interest is compounded daily. what is the actual rate mr. miser is charging on his loans?

+2
Answers (1)
  1. 22 June, 16:46
    0
    To solve use the effective annual rate method:

    Effective Annual Rate

    = (1 + Periodic Rate) ^Number of periods in a year - 1

    = (1 + 0.15 / 365) ^365 - 1

    = 16.18%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Mr. miser loans money at an annual rate of 15 percent. interest is compounded daily. what is the actual rate mr. miser is charging on his ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers