Question
You've obtained an unsecured loan of $6,000 from a bank, which spans a period of 7 years. The loan has a variable interest rate with
You've obtained an unsecured loan of $6,000 from a bank, which spans a period of 7 years. The loan has a variable interest rate with an APR of 14.4%, equivalent to 1.2% per month. Additional fees include a $150 establishment fee and a $10 monthly administration fee. What are the monthly repayment amounts for this loan, and what is the Effective Annual Rate (EAR)?
Please do NOT answer by using the formula below.
Effective Annual Rate =((1+nr)n)1 Step by Step Solution
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The Routledge Handbook Of Financial Literacy
Authors: Gianni Nicolini, Brenda J. Cude
1st Edition
0367457776, 978-0367457778
