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Loan Amortization and Effective Interest Rate You are thinking about buying a car, and a local bank is willing to lend you $ 2 0
Loan Amortization and Effective Interest Rate
You are thinking about buying a car, and a local bank is willing to lend you $ to buy the car. Under the terms of the loan, it will be fully amortized over years months and the nominal rate of interest will be percent, with interest paid monthly. What would be the monthly payment on the loan? What would be the effective rate of interest on the loan?
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