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    Monthly interest rate on a car loan

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    You took out a car loan. You must pay $500 a month for 48 months. You calculate that the FV of the loan is $33,034.18. What is your monthly interest rate?

    a)1.0% b)2.5% c)3.1% d)1.3% e)1.90%
    f)2.9% g)2.1% h)0.94% i)0.83% j)2.13%

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    Solution Preview

    FVIFA= Future Value Interest Factor for an Annuity

    FV= $33,034.18
    Monthly ...

    Solution Summary

    The solution calculates monthly interest rate.