A fire has destroyed a large percentage of the financial records of the strongwell co. you have the task of piecing together inf
1 answer:
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Answer:
effective interest rate = 4.75 %
Explanation:
given data
principal = $108,000
time = 8 months = year
rate = 10%
solution
we get here first interest that is
interest = principal × rate × time .................1
put here value
interest = $108,000 × 10% ×
interest = $7200
so here effective interest rate will be here as
effective interest rate = × time ...........2
put here value
effective interest rate = ×
effective interest rate = 0.04761
effective interest rate = 4.75 %