Problemfarmers bank offers to lend you 50000 in a nominal, Ask an Expert

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Farmers Bank offers to lend you 50,000 in a nominal rate of 5% simple interest we dancers pay quarterly. Merchants Bank offers to Lenny 50,000 but it will charge 6% simple interest with the interest rate at the end of the year. What's the difference in the effective annual rate charge by the two banks? Explain in detail please provide step by step solution.

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Category:- Basic Finance
Reference No.:- M91146022

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