2. Red Lizard Construction just borrowed $53,400.00. The terms of the loan require the company to make equal monthly payments forever. The first monthly payment is due in 1 month. If the regular monthly loan payment

is $520.00, then what is the EAR of the loan?

O A rate equal to or greater than 9.67% but less than 10.92%

O A rate equal to or greater than 12.01% but less than 12.66%

O A rate less than 9.67% or a rate greater than 12.66%

O A rate equal to or greater than 10.92% but less than 11 46%

O A rate equal to or greater than 11.46% but less than 12.01%