You will receive $15,000 in two years when you graduate. You plan to invest this at an annual interest rate of 6.5%. How much mo
1 answer:
You might be interested in
Answer:
The appropriate response is "12.47%".
Explanation:
The given values are:
Borrowed amount,
= 152300
APR,
= 11.75%
i.e.,
= 0.1175
Now,
The effective annual rate will be:
=
On substituting the given values, we get
=
=
=
=