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Abe is buying a new car. His bank quotes a rate of 5 . 3 percent per year for a car loan. Calculate the effective

Abe is buying a new car. His bank quotes a rate of

5.3

percent per year for a car loan. Calculate the effective annual rate if

the compounding occurs annually.

(

Round answer to

2

decimal places, e

.

. 25.12 % .)

Answer:

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