1) Loan amortization and EAR You want to buy a car, and a local bank will lend you $10,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 11% with interest paid monthly. What will be the monthly loan payment? Round your answer to the nearest cent. $ What will be the loan's EAR? Round your answer to two decimal places. %

2)

Effective rate of interest

Find the interest rates earned on each of the following. Round each answer to two decimal places.

1. You borrow $710 and promise to pay back $781 at the end of 1 year.

   %

2. You lend $710 and the borrower promises to pay you $781 at the end of 1 year.

   %

3. You borrow $86,000 and promise to pay back $370,698 at the end of 14 years.

   %

4. You borrow $20,000 and promise to make payments of $6,687.60 at the end of each year for 5 years.

   %