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A loam of $750 is to be repaid in 18 equal monthly installments, computed as follows: Loan Interest at 1% per month for 18

A loam of $750 is to be repaid in 18 equal monthly installments, computed as follows: Loan Interest at 1% per month for 18 months Credit check and processing fee $750 144 60 $954 Monthly payment: $954118= $53 What (a) nominal and (b) effective annual interest rates are being charged?

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