Effective interest rate of loan and the stated interest rate

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Reference no: EM13941952

a. Explain the difference, if any, between the effective interest rate of a loan and the stated interest rate.

b. How do lenders safeguard against loans secured by accounts receivable?

c. What are some of the common methods for banks to increase their return (the effective interest rate) on loans?

Reference no: EM13941952

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