Pete Sampras borrows $10,000 to purchase a car. He must repay the loan in 48 equal endofperiod
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Pete Sampras borrows $10,000 to purchase a car. He must repay the loan in 48 equal endofperiod monthly payments. Interest is calculated at 1.25% per month. Determine the following:
(a) The nominal annual interest rate
(b) The effective annual interest rate.
(c) The amount of the monthly payment
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