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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 $849.67 every month for the
You're about to buy a new car for $10,000. The dealer offers you a one-year loan where you pay $849.67 every month for the next 12 months. Since you pay = $849.67 * 12 $10,196 in total, the dealer claims that the loan's annual interest rate is (10,196-10,000)/10,000 = 1.961%. Part 1 What is the actual effective annual rate? 4+ decimals BAttempt 1/10 for 10 pts. Submit
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Calculating the Effective Annual Rate EAR The dealers claim of 1961 annual interest rate is inaccura...
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Principles Of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter
14th Global Edition
1292018208, 978-1292018201
