You borrow $12,000.00 to buy a car and obtain a 3 year loan with monthly payments $365.06.

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You borrow $12,000.00 to buy a car and obtain a 3 year loan with monthly payments $365.06. What is your effective annual rate?

EAR = (1 + APR/m) m - 1

12%

6.168%

.5%

Related Book For answer-question

Corporate Finance Core Principles and Applications

ISBN: 978-0077905200

3rd edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford

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Posted Date: Jun 17, 2022 12:23 AM

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You borrow $12,000.00 to buy a car and obtain a 3 year loan with monthly payments $365.06.

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Soluhus P Since the and given PX RX 1R 1r 1 Formula for monthl... View the full answer

Corporate Finance Core Principles and Applications

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