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Problem 5-45 EAR of Add-On Interest Loan (LG5-7, LG5-8) To borrow $2,700, you are offered an add-on interest loan at 10.7 percent with 12 monthly

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Problem 5-45 EAR of Add-On Interest Loan (LG5-7, LG5-8) To borrow $2,700, you are offered an add-on interest loan at 10.7 percent with 12 monthly payments. Compute the 12 equal payments. (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Use the amount you borrowed and the monthly payments you computed to calculate the APR of the loan. Then use that APRO compute the EAR of the loan. (Do not round Intermediate calculations and round your final answer to 2 decimal places Answer is complete but not entirely correct. EAR 1124 %

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