when calculating a loans effective interest rate, if the nominal rate is 8.5%, what value of i do you plug…

when calculating a loans effective interest rate, if the nominal rate is 8.5%, what value of i do you plug into your equation?\na. 8.5\nb. 0.85\nc. 0.085\nd. 1.85

when calculating a loans effective interest rate, if the nominal rate is 8.5%, what value of i do you plug into your equation?\na. 8.5\nb. 0.85\nc. 0.085\nd. 1.85

Answer

Explanation:

Step1: Convert percentage to decimal

Percentages are out of 100. To convert 8.5% to a decimal, divide by 100. $8.5%=\frac{8.5}{100}=0.085$

Answer:

C. 0.085