You plan to apply for a loan from Bank of Kuala Lumpur. The nominal annual interest rate for this loan is 12.66 percent, compounded daily (with a 365-day year). What is the effective annual rate or EAR (annual percentage yield) of this loan? Round your answer to two decimal places in percentage form. Select one: A. 15.00% B. 13.00% C. 13.49% D. 12.66%
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
You plan to apply for a loan from Bank of Kuala Lumpur. The nominal annual interest rate for this loan is 12.66 percent, compounded daily (with a 365-day year). What is the effective annual rate or EAR (annual percentage yield) of this loan? Round your answer to two decimal places in percentage form.
15.00%
13.00%
13.49%
12.66%
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