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You are borrowing $18,000 to buy a car. The terms of the loan call for monthly payments for 5 years at 6 percent interest (APR=5%).

You are borrowing $18,000 to buy a car. The terms of the loan call for monthly payments for 5 years at 6 percent interest (APR=5%). What is the actual (effective) annual rate?

a- 5.12%

b- 5%

c- 5.25%

d- 5.04%

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