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You're about to buy a new car for $10,000. The dealer offers you a one-year loan where you pay $894.11 every month for the next
You're about to buy a new car for $10,000. The dealer offers you a one-year loan where you pay $894.11 every month for the next 12 months. Since you pay $894.1112=$10,729 in total, the dealer claims that the loan's annual interest rate is (10,72910,000)/10,000=7.29%. Part 1 Attempt 1/10 for 10 pts. What is the actual effective annual rate? Part 2 Attempt 1/10 for 10 pts. What rate should the dealer quote by law
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