Business, 06.01.2021 18:30, Anderson0300
A loan of $12,000 is to be repaid within one year with level monthly payments, due at the beginning of each month. The 12 payments equal $1,000 each. A finance charge of $632 is also due with the first payment. Which of the following is closest to the effective annual interest rate on the loan?
a. 12.7%
b. 12.9%
c.13.1%
d. 13.3%
e. 13.5%
Answers: 3
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A loan of $12,000 is to be repaid within one year with level monthly payments, due at the beginning...
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