Question
To borrow $3,400, you are offered an add-on interest loan at 9.6 percent with 12 monthly payments. Compute the 12 equal payments. (Round your answer
| To borrow $3,400, you are offered an add-on interest loan at 9.6 percent with 12 monthly payments. |
| Compute the 12 equal payments. (Round your answer to 2 decimal places.) |
| Equal payment | $ |
| Compute the EAR of the loan. (Do not round intermediate calculations and round your final answer to 2 decimal places.) |
| EAR | % |
I got 310.53 for payments & 10.03% for EAR. Is that correct? Show me the steps, please.
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Intermediate Financial Theory
Authors: Jean-Pierre Danthine, John B. Donaldson
2nd Edition
0123693802, 978-0123693808
