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A banks review of its auto loans estimates credit losses of 1.33 percent annually. The bank currently has gross auto loans of $2, 000, 000.
A banks review of its auto loans estimates credit losses of 1.33 percent annually. The bank
currently has gross auto loans of $2, 000, 000. If the bank wants to earn a rate of 4.5 percent
(after losses) on its auto loans, what rate should it charge its borrowers? Express your answer as a percentage rounded to two decimal places (i.e. four and a quarter percent is 4.25)
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