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Newbie Business Center has borrowed $12,000 from its bank. The loan is for three years and requires the firm to make equal monthly payments of
Newbie Business Center has borrowed $12,000 from its bank. The loan is for three years and requires the firm to make equal monthly payments of $398.57. Each payment is comprised of both interest and principal repayment, and the payments will begin one month after the loan agreement. What effective annual rate is the bank charging Newbie for this loan? Round your answer to the nearest tenth of a percent.
Question 14 options:
| 10.1% |
| 12.0% |
| 12.7% |
| 1.0% |
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