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1-A store offers a 'special deal' to lend us $5,500 today, whereby you pay off the loan in one year with 12 monthly payments of

1-A store offers a 'special deal' to lend us $5,500 today, whereby you pay off the loan in one year with 12 monthly payments of $500 each, with the first payment due 1-month from today. What effective annual rate (EAR) are they charging us on the loan?

One client owes your firm $1000 per month for the next 18 months. Another client owes you $40,000 to be paid all at once 18 months from today. What is the combined present value of cash you will receive from your clients if r = 6% APR with monthly compounding?

please answer both question for full rate

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