Answer:
The appropriate response is "12.47%".
Explanation:
The given values are:
Borrowed amount,
= 152300
APR,
= 11.75%
i.e.,
= 0.1175
Now,
The effective annual rate will be:
= [tex](\frac{1+APR}{n} )^n[/tex]
On substituting the given values, we get
= [tex](\frac{1+0.1175}{365} )^{365}[/tex]
= [tex](\frac{1.1175}{365} )^{365}[/tex]
= [tex]1.12466-1[/tex]
= [tex]0.1247 \ or \ 12.47 \ percent[/tex]
