Use given formulas to solve.

An individual borrows $900 from a 'small investment company that is to be repaid in 12 equal end-of-month payments with an interest stated as 1.25% per month." The monthly payments were defined by the loan company as shown below: Principal of loan $900.00 Interest @ 1.25% per month 135.00 Credit investigation 25.00 Total $1,060.00 Monthly payments = $1,060.00/12 = $88.33 Determine the effective interest rate for this loan. Converts Formula Symbol (F/P.%, n) to F given P (1 + i)" Factor Name Single Payment Compound Amount Single Payment Present Worth Uniform Series Sinking Fund to P given F (P/F, 1%, n) (1+1) to A given F (A/F, 1%, 1) Capital Recovery to A given P (A/P, 1%, n) (1 + i)" - 1 i(1+i)" (1 + i)" - 1 (1 + i)" - 1 Uniform Series Compound Amount to F given A (F/4, i%.n) Uniform Series Present Worth to P given A (P/A, %n) (1 + i)" - 1 i(1 + i" (1 + i)" - 1 17 to P given G (P/G, 1%, n) Uniform Gradient Present Worth Uniform Gradient + Future Worth to F given G (F/G, i%, n) (1 + i)" -1_n 12 1 17 Uniform Gradient Uniform Series to A given G (A/G, 1%, n) (1+i)" - 1