You just obtained a car loan for $10,000 that has monthly (end of the month) payments of $361.33. This is an seven year installment loan. What is the effective annual interest rate (EAR) of this loan?

Question 15 options:

1)

19.56%

2)

3.25%

3)

3.00%

4)

42.58%

5)

1.50%

6)

34.80%

7)

49.19%

8)

50.76%

9)

46.78%