Bank effective annual interest rate on loan transaction

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To start a new business, Gilda intends to borrow $20,200 from a local bank. If the bank asks her to repay the loan in 3 equal annual instalments of $8,555.14.

Determine the bank's effective annual interest rate on the loan transaction. With annual compounding, what nominal rate would the bank quote for this loan?

Reference no: EM132402912

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