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You have been told that the effective annual interest rate that BOA Bank is charging on its home loans is 8.33% with interest compounded on a daily basis. Based on this information, the stated (or nominal) interest rate pa is closest to: a) 7.80% b) 8.00% c) 8.33% d) 8.67% Answer is B, But Why? .

You have been told that the effective annual interest rate that BOA Bank is charging on its home
loans is 8.33% with interest compounded on a daily basis. Based on this information, the stated
(or nominal) interest rate pa is closest to:
a) 7.80% b) 8.00% c) 8.33% d) 8.67%
Answer is B, But Why?

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