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You are looking to buy a car and you have been offered a loan with an APR of 6 . 1 % , compounded monthly.

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

6.1 %,

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.

)

.

What is the true monthly rate of interest?

The monthly rate of interest is

% . (

Round to four decimal places.

)

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