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Interest Rate on loan

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You agree to loan your parents $32,000 to buy a new van. They agree to pay you $650 a month for 5 years. The .
a. interest rate on the loan is 0.75% per month
b. APR on the loan is 7.87%
c. EAR on the loan is 8.08%
d. APR on the loan is 8.22%
e. EAR on the loan is 8.38%

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Solution Summary

The solution explains how to calculate the interest rate on a loan.

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The interest rate would which will make the present value of the payments equal to the value of the ...

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