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Answer to Question #233744 in Civil and Environmental Engineering for Alan Enrico V Tuib
Question #233744
At the Central Furniture Company, customers who buy on credit pay an effective annual interest rate of 16.1%, based on monthly compounding. What is the nominal annual interest rate that they pay?
Expert's answer
Customers who buy on credit pay an effective annual interest rate of 16.1%, based on monthly compounding then the nominal annual interest rate that they pay will be 15%.
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