3
QuizMultiple Choice

Interest Rates

Question 3 • 2025-2026 GSP Mathematical Reasoning for Decision Making

Andrew is choosing between four loans. Loan P has a nominal rate of 10.393%, compounded daily. Loan Q has a nominal rate of 10.516%, compounded weekly. Loan R has a nominal rate of 10.676%, compounded monthly. Loan S has a nominal rate of 10.755%, compounded annually. Which loan will give Andrew the best effective interest rate?

Answer
A
loan P
B
loan Q
C
loan R
D
loan S
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