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Cliff Capital Corporation (CCC) is taking out a new 2-year bank loan for $100,000 at 6% interest (APR monthly compounding). The bank charges 1% closing
Cliff Capital Corporation (CCC) is taking out a new 2-year bank loan for $100,000 at 6% interest (APR monthly compounding). The bank charges 1% closing fees on the loan. If CCC pays off the loan in equal monthly installments, then what is the effective annual interest rate of this loan?
Select one:
a.
6.17%
b.
6.67%
c.
6.99%
d.
7.22%
e.
None of the above.
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