The Omega Corp. plans to borrow $10,000 for a 60-day period - 3811

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Request Description

The Omega Corp. plans to borrow $10,000 for a 60-day period. At maturity, Omega will repay the $10,000 principal plus interest at an annual rate of 12%. What is the effective rate of interest on this loan?

          a.   12.62%

          b.   12.13%

          c.   11.47%

          d.   11.22%

Solution Description

The Omega Corp. plans to borrow $10,000 for a 60-day period. At maturity, Omega will repay the