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Suppose National Bank offers to lend you $10,000 for one year at a nominal annual rate (annual percentage rate) of 8.00%, but you must make interest payments at the end of each quarter and then pay off the $10,000 principal amount at the end of the year. What is the effective annual rate (EAR) on this loan?

8.00%

8.24%

8.30%

8.33%

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91544468

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