Ask Question
14 September, 21:12

If an eight-day single payment loan has a periodic interest rate of 11.1%, what is the approximate effective interest rate of the loan?

+4
Answers (1)
  1. 14 September, 21:30
    0
    Effective interest rate = Daily interest rat = Annual interest rate/number of days in a year

    Annual interest rate = 11.1%

    Number of days in a year = 365

    Therefore,

    Effective interest rate = 11.1/365 = 0.03%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “If an eight-day single payment loan has a periodic interest rate of 11.1%, what is the approximate effective interest rate of the loan? ...” in 📗 Mathematics 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