Question: Please help me understand this problem to study for my test. You need $20,000 for an automobile purchase.Your bank offers several options, including a 6

Please help me understand this problem to study for my test. You need $20,000 for an automobile purchase.Your bank offers several options, including a 6 percent (APR) loan, with monthly payments over five years.

What is the EAR in this loan?

options:

a)6.17%

b)6.15%

c)6.22%

d)6.0%

e)6.60%

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