Any contract, whether it is for the sale of real estate or some other entity, must contain five basic elements. However, any con
1 answer:
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The effective interest rate is greater by 0.72 percentage points as compared to the nominal interest rates.
Computation:
Given,
Nominal Interest rate =11.85%
compounding period = weekly, that is 52.
The formula of the effective interest rate will be used:
Now, the difference of the effective interest rate and nominal interest rate will be determined to know the exceeding percentage:
Therefore, option a. 0.72 percentage points is correct.
To know more about the effective interest rates, refer to the link: