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Suppose you want to buy a car that costs $40,000, and will finance it at a local bank over 5 years at a 4% APR

Suppose you want to buy a car that costs $40,000, and will finance it at a local bank over 5 years at a 4% APR interest rate. You must make installment loan loan payments monthly.

TASK >> Calculate the effective compound annual interest rate (EIR) on your loan. Please enter your answer as a PERCENT with two digits to the right of the decimal point -- that is, enter 12.34 if your decimal answer is 0.1234.

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