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A bank is offering four-year car loan that should earn 10.5% compounded monthly. Knowing that such interest rates are very high to attract customers the
A bank is offering four-year car loan that should earn 10.5% compounded monthly. Knowing that such interest rates are very high to attract customers the bank decides to offer car loans using Flat rates with monthly payments. What Flat rate should the bank offer a customer who wants to borrow $25,000 to buy a Camry such that the bank generates an equivalent of 10.5%?
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