You've borrowed $693.25 and agreed to pay back the loan with monthly payments of $50. If the interest rate is 12% stated as an APR, how long will it take you to pay back the loan? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Payback period years b. What is the effective annual rate on the loan? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Effective annual rate on the loan
Added by Tina G.
Step 1
To calculate the monthly interest rate, divide the annual interest rate by 12 (since there are 12 months in a year). Monthly interest rate = 12% / 12 = 1% = 0.01 Show more…
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