What is effective rate of interest

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Reference no: EM132050688

Coverall Carpets Inc. is planning to borrow $12,000 from the bank. The bank offers the choice of a 12 percent discounted interest loan or a 10.19 percent add-on, one-year installment loan, payable in 4 equal quarterly payments. What is the effective rate of interest on the 12 percent discounted loan? (Please only enter number. For example, if your answer is 12.5%, enter 12.5)?

Reference no: EM132050688

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