1. A loan is offered with monthly payments and a 8.25 percent APR. Whats the loans effective annual rate (EAR)? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

2,

You are looking to buy a car. You can afford $440 in monthly payments for four years. In addition to the loan, you can make a $1,100 down payment. If interest rates are 7.25 percent APR, what price of car can you afford? (Do not round intermediate calculations and round your final answer to 2 decimal places.)