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Conrad bought a new truck on a 6 0 - month 5 year loan with a 7 . 5 % APR and 7 . 7

Conrad bought a new truck on a $60 -$ month $5$ year loan with a $7.5 %$ APR and $7.7 %$ EAR. At what interest rate would Conrad actually pay for his new truck?

The EAR as it takes the effects of compounding.

The APR as it is shown on the car loan agreement.

The APR because it is the advertised interest rate given to him.

The EAR because it is the higher rate than APR.

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