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Assume you barrow $100,000 for a year and the stated interest rate is 5 percent. The loan will be st up as an installment loan
Assume you barrow $100,000 for a year and the stated interest rate is 5 percent. The loan will be st up as an installment loan with monthly payment. 1) What is the annual percentage rate? 2) Discuss why the annual percentage rate is different then the stated interest rate.
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