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You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized over 5 years (60 months),

You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized over 5 years (60 months), and the nominal interest rate would be 12%, with interest paid monthly.

a)What would be the monthly loan payment?

b)What would be the loans EAR?

c) If the nominal interest rate of the loan is quoted as 12% with semiannual compounding assumption, what is your monthly payment?

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