Multiple Choice
You have just borrowed $30,000 to buy a new car. The loan agreement calls for 48 monthly payments of $704.55 each to begin one month from today. If the interest is compounded monthly, then what is the effective annual rate (EAR) on this loan?
A) 6.17%
B) 7.06%
C) 6.00%
D) 6.67%
E) 7.54%
Correct Answer:
Verified
Correct Answer:
Verified
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