You just received a loan from your banker to buy seed and plant your alfalfa field. The loan is a discount loan and is for $5,000 for 1 year and the quoted rate was 10%. What is your APR?

A) 10.00%
B) 11.11%
C) 12.23%
D) 14.33%
E) None of the above

Answer: B

Business

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