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

6.4%,

compounded monthly.

a. What is the true monthly rate of interest?

b. What is the EAR?

(Note: Be careful not to round any intermediate steps less than six decimal places.)

Question content area bottom

Part 1

a. What is the true monthly rate of interest?

The monthly rate of interest is

enter your response here%.

(Round to four decimal places.)

Part 2

b. What is the EAR?

The EAR is

enter your response here