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

Suppose you want to buy a car that costs $40,000 and will finance it at a local it at a local bank over 5 years at a 4% APR interest rate. You must make installment loan payments monthly. Calculate the effective compound annual interest rate (EIR) on your loan.

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