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26 January, 16:48

Mr. miser loans money at an annual rate of 15 percent. interest is compounded daily. what is the actual rate mr. miser is charging on his loans?

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  1. 26 January, 20:23
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    To solve use the effective annual rate method:

    Effective Annual Rate

    = (1 + Periodic Rate) ^Number of periods in a year - 1

    = (1 + 0.15 / 365) ^365 - 1

    = 16.18%
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