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Your friend wants to buy a car, and you plan to lend him/her $15,000. S/He will payoff the loan fully in 5 years and the

Your friend wants to buy a car, and you plan to lend him/her $15,000. S/He will payoff the loan fully in 5 years and the interest rate will be 8%, to be paid monthly.

(i) What will be your friends monthly payment?

(ii) What will be the EAR (calculation may have to be carried out to four decimal points)?

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