7 points QUESTION 3 1. I received the following 5 year loan "offer" in the mail recently from Capital One. I am considering accepting the "offer" but need to know some things: 1. What will my monthly payments be if I borrow the $25,000 at the stated 12.9% APR? 2. What is the effective annual rate (EAR) of borrowing associated with this offer? 3. In 12 months from now, I expect to receive a substantial inheritance (don't ask how I know this!). If I want to take some of this inheritance money and pay off the loan at that time, how much principal will I have left on the loan to pay it all off then? Use the space below to provide your answers to all 3 parts. Show your work to enable part marks where appropriate. CapitalOne 12.9% FIXED Interest Rate Loan Amount: $25,000 Dear Valued Customer, As a CapitalOne customer with an excellent credit history, you are pre-selected to apply for this special offer - a personal loan from Capital One with a low 12.9% FIXED Interest Rate. Lock in this great interest rate before rates go up. You could save hundreds, even thousands of dollars in interest over the life of the loan. A personal loan for you in the amount of $25,000. Just return the attached Invitation, and upon approval, CapitalOne will send you a cheque for $25,000. Cash it...put it in the bank...use it for whatever you need. Save money in finance charges. Even if you don't have a major purchase on the horizon, you could save a lot of money with our 12.9% FIXED Interest Rate. Us this loan to consolidate your other credit card balances and bills. This Capital One loan offers you these excellent benefits: You can budget for your monthly payment because it's always the same - for 60 months. Credit card balances and payments often fluctuate from month to month