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14-03-2024
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Jason’s Birdfeed needs to borrow $1 million for one year. It is considering several possible options for a loan with a 8% interest rate. What is the effective rate for each of the following loans:
a. Simple interest rate of 8%
b. Compound interest rate of 8%
c. Annual percentage rate (APR) of 8%
d. Effective annual rate (EAR) of 8%

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