3. Calculate (simple interest):

(3a) rPER = $ cost of borrowing / $ amount of useable funds = _________

(3b) rAPR = rPER x 12# of months = ___________________

(3c) rEAR = (1+rPER ) - 1 = _______________

HINT:

rPER = $ amount (interest x #of months12)$ amount