Question of the Day!

Section 5 - Economics - Question 1

A loan-shark company provides loans and charges an interest of 5% per month.  If the interest is compounded monthly, the effective interest rate for the year most nearly is

  60.00%

64.34%

78.58%

79.58%

HINT

This question of the day was provided by the courtesy of  Professor Autar Kaw of the University of South Florida from the book FE Practice Exam With Complete Solutions