A firm arranges a discount loan at a 12 percent interest rate, and borrows $100,000 for one year. The stated interest rate is _________ and the effective interest rate is _________.
A. 12.00%; 12.00%
B. 13.64%; 12.00%
C. 12.00%; 13.64%
D. 12.00%; 10.71%
Answer:C
A firm arranges a discount loan at a 12 percent interest rate, and borrows $100,000 for one year. The stated interest rate is _________ and the effective interest rate is _________.
A. 12.00%; 12.00% B. 13.64%; 12.00% C. 12.00%; 13.64% D. 12.00%; 10.71%