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? a. 8.5 b. 0.85 c. 0.085 d. 1.85 please select the best answer from the choices provided

when calculating a loans effective interest rate, if the nominal rate is 8.5%, what value of i do you plug into your equation? a. 8.5 b. 0.85 c. 0.085 d. 1.85 please select the best answer from the choices provided

Answer

Explanation:

Step1: Convert percentage to decimal

Percentages are converted to decimals by dividing by 100. So for 8.5%, we calculate $8.5\div100$. $8.5\div100 = 0.085$

Answer:

C. 0.085