Melanie is looking for a loan. She is willing to pay no more than an effective rate of 9.955% annually. Which, if any, of the following loans meet Melanie's criteria?

Options:

Loan A: 9.265% nominal rate, compounded weekly

Loan B: 9.442% nominal rate, compounded monthly

Loan C: 9.719% nominal rate, compounded quarterly

Answers:

a. B only

b. A and C

c. A and B

d. None of these fit Melanie's criteria.

Question

Callum Aguilar

30 September, 09:23

+4

Answers (1)

Know the Answer?

Joselyn Strickland · Answer 1

Um loan b since loan c is charged to often and loan b is also to often so a monthly loan would be better than a weekly bill or a quarter bill