29. If the future is 25% more than the principal after 8 months, determine the simple interest rate. a. 26.34% b. 18.56% O O d. 37.5% c.15.67%

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Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.