A loan is made at time 0 at simple interest at a rate of 5%. (a) In which period is this equivalent to an effective rate of 1/22? n = (b) What is the effective interest rate for the interval [3, 5]? (Round your answer to two decimal places.) %
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- A loan is made at time 0 with a simple interest rate of 5%. - We need to find the period \( n \) where this is equivalent to an effective rate of \(\frac{1}{22}\). - We also need to find the effective interest rate for the interval [3, 5]. Show more…
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