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You are considering a car loan for an amount of $12,480. The loan will require you to make monthly payments for 4 years and the

You are considering a car loan for an amount of $12,480. The loan will require you to make monthly payments for 4 years and the loan's interest rate is 9% compounded monthly.

1. Calculate the loan's monthly payment

2. What is the loan EAR?

3. If the competitive market interest rate for such a loan were to suddenly rise to 10% (monthly compounding) or fall 8% (monthly compounding), how would the current market value of the loan change? Solve using a financial calculator

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