Respuesta :

dylanasmith1738
The answer would be 13.75 Thats the effective interest rate. (btw this question is about me lol)

Answer:

13.75%

Step-by-step explanation:

Givens:

  • APR first days: 0%.
  • APR afterwards: 14.04%.

We have to find the effective interest rate, which is defined as:

[tex]R=(1+\frac{r}{365} )^{D}-1\\[/tex]

First days:

[tex]R=(1+\frac{0}{365} )^{60}-1=1^{60}-1=0[/tex]

Afterwards:

[tex]R=(1+\frac{0.1404}{365} )^{335}-1=0.1375 \ (or \ 13.75\%)[/tex]

So, the effective interest would be the difference between these two, which is 13.75%.

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