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You have agreed to a​ $40,000 fixed−rate loan from Chase Bank today and promise to repay...

You have agreed to a​ $40,000 fixed−rate loan from Chase Bank today and promise to repay the loan with 36 equal monthly payments at an APR of​ 5.50%. What is the EAR of this​ loan?

A.​5.64%

B.​5.88%

C.​5.50%

D.6.00%

2.

The public auction of bonds in the United States is regulated by the Federal Reserve System.

True or False

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Answer #1

Ans 1) A.​5.64%

EAR = ( 1 + r )^n - 1
Compounded Monthly
EAR= ( 1 + 5.50%/12)^12 - 1
EAR= 5.64%
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