Solved

What Is the Effective Annual Interest Rate on a 9

Question 20

Multiple Choice

What is the effective annual interest rate on a 9 percent APR automobile loan that has monthly payments?

A) 9.00 percent
B) 9.38 percent
C) 9.81 percent
D) 10.94 percent Effective rate = (1 + (.09 + 12) ) ¹²-1
= (1.0075) ¹²-1
= 1) 0938-1

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