The bank quote of 8% means that you will have to pay an interest rate of 8%/12

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The bank quote of 8% means that you will have to pay an interest rate of 8%/12 ≈ 0.667% per month. This earns an actual interest rate of (1 + 0.667%)12 − 1 ≈ 8.30% per annum. You will have to pay $108.30 in repayment for every $100 you borrowed.

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