A firm took a one-year loan of $30,000 from a bank. Given the nominal interest rate is 6% p.a. and interest is to be paid at the end of the loan. The effective interest rate of the loan (rounded to one decimal place) is ______ . Question 4 options: 1) 6.0% p.a. 2) 6.4% p.a. 3) 6.6% p.a.

A firm took a one-year loan of $30,000 from a bank. Given the nominal interest rate is 6% p.a. and interest is to be paid at the end of the loan. The effective interest rate of the loan (rounded to one decimal place) is ______ . Question 4 options: 1) 6.0% p.a. 2) 6.4% p.a. 3) 6.6% p.a.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 14P

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Question

Question 4 options:

6.0% p.a.

6.4% p.a.

6.6% p.a.

4)	None of the above

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