Pete Sampras borrows $10,000 to purchase a car. He must repay the loan in 48 equal end-of-period

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Pete Sampras borrows $10,000 to purchase a car. He must repay the loan in 48 equal end-of-period 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.

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Engineering Economics

ISBN: 9780195168075

9th Edition

Authors: Ted G. Feller

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Question Posted: Mar 01, 2010 04:16 AM

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Pete Sampras borrows $10,000 to purchase a car. He must repay the loan in 48 equal end-of-period

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a P 1000 A 9030 i m 12 months 1000 9...View the full answer

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