Question

Close Date: Fri, Jun 18, 2021, 09:29 AM Question 1 of 9 Rebecca went to a bank and obtained a personal loan with an interest rate of 4.00% compounded monthly. If the effective interest rate on the loan were to decrease by 0.50%, calculate the new nominal interest rate compounded monthly. 0.00 % Round to two decimal places → SAVE PROGRESS SUBMIT​

Answer 1

Answer:

What Is an Effective Annual Interest Rate?

Ans:-The effective annual interest rate is the real return on a savings account or any interest-paying investment when the effects of compounding over time are taken into account. It also reveals the real percentage rate owed in interest on a loan, a credit card, or any other debt.

It is also called the effective interest rate, the effective rate, or the annual equivalent rate.