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Rate charged by bank 12 5 on credit loans and 3...

This question belongs to Commerce Financial Management
Financial Management
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Rate charged by bank 12.5% on credit loans and 3% semi-annually on instalment loans is considered as

Answer & Solution
Correct Answer: Option A
Rate charged by bank 12.5% on credit loans and 3% semi-annually on instalment loans is considered as periodic rate. A periodic interest rate can be charged on a loan or realized on an investment over a specific period of time.
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