. You wish to take a loan of $100,000 for 7 months. You know that the bank charges an APR of 8% (compounded monthly, meaning 8%/12 per month) and a loan initiation fee of $1,100. The repayment of the loan is in a single amount at the end of the 7-month period. What is the loans EAIR? (Note: the net amount of cash you can take home is NOT $100,000 since you need to deduct the initiation fee of $1,100 from the loan amount).

PLEASE SHOW CLEAR EXCEL CALCULATIONS AND STEPS

Monthly interest rate (use Single CF equation) Second calculation (use Rate function) EAIR Monthly interest rate (use Single CF equation) Second calculation (use Rate function) EAIR