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Posted on Aug 19, 2024

You are looking to buy a car and you have been offered a loan with an APR of 5 . 8 % , compounded monthly.

You are looking to buy a car and you have been offered a loan with an APR of $5.8 %,$ 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. $)$

a $.$ What is the true monthly rate of interest?

The monthly rate of interest is $% . ($ Round to four decimal places. $)$

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