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Please help me understand this problem to study for my test. You need $20,000 for an automobile purchase.Your bank offers several options, including a 6
Please help me understand this problem to study for my test. You need $20,000 for an automobile purchase.Your bank offers several options, including a 6 percent (APR) loan, with monthly payments over five years.
What is the EAR in this loan?
options:
a)6.17%
b)6.15%
c)6.22%
d)6.0%
e)6.60%
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