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Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $320.00 at the end of each quarter and then pay off the principal amount at the end of the year. What is the effective annual rate on the loan?

a.
13.83%

b.
15.71%

c.
12.35%

d.
13.43%

e.
12.62%

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