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You are looking to buy a car and you have been offered a loan with an APR of 5.8%, compounded monthly. a. What is the true mo
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Solution . 1. Tove monthly rate of Interest = 5.8 = 0.4833% 1. 2. Effective Annual Rate of return = (1+5.8%/12) 12-1 = 5.9562

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