The effective yield on the loan is the least when the loan is priced at

Question

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The effective yield on a loan is least when interest is calculated using a 365-days/actual number of days basis. This method accounts for the actual number of days in each month and the actual days in a year, leading to a more precise and typically lower interest calculation compared to methods that use a simplified or standardized approach to the number of days in a month or year.

The Effective Yield on the Loan Is the Least When