The art club has a budget of $350 for art supplies. The club has already purchased a display board for $125 and would like to bu
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Answer:
16.52%
Step-by-step explanation:
The effective interest rate is the real interest rate you have to pay on a loan when the compounding effect is considered. The formula to calculate it is:
Effective annual interest rate= (1+)^n-1
i= interest rate: 15.3%
n= number of compounding periods: 365 as it is compounded daily and a year has 365 days.
Effective annual interest rate= (1+(0.153/365))^365-1
Effective annual interest rate= 0.1652→16.52%
According to this, the effective interest rate is 16.52%.