You took out a $120 loan today and need to pay back $135 in 9 months. 1.

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You took out a $120 loan today and need to pay back $135 in 9 months.

1. What is the APR of the loan (that was quoted to you)?

2. What is the EAR of the loan with quarterly compounding?

Related Book For answer-question

Fundamentals of Corporate Finance

ISBN: 978-1259024962

6th Canadian edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim

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Posted Date: Apr 03, 2023 10:08 PM

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You took out a $120 loan today and need to pay back $135 in 9 months. 1.

Question:

Expert Answer:

1 To calculate the APR Annual Percentage Rate of the loan we can use the following formula APR Total ... View the full answer

Fundamentals of Corporate Finance

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