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Problem 5 - 6 3 Effective Interest Rate ( LO 4 ) Assume you take out a car loan of $ 7 , 7 0
Problem Effective Interest Rate LO
Assume you take out a car loan of $ that calls for monthly payments of $ each.
a What is the APR of the loan?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to decimal places. Use a financial calculator or Excel.
Annual percentage rate
b What is the effective annual interest rate on the loan?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to decimal places.
Effective annual rate
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