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You are looking to buy a car and you have been offered a loan with an APR of 5 . 9 % , compounded monthly.

You are looking to buy a car and you have been offered a loan with an APR of

5.9 %,

compounded monthly.

.

What is the true monthly rate of

interest?

.

What is the

EAR?

(

Note

: Be careful not to round any intermediate steps less than six decimal

places.

)

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