Effective Annual Rate a Loan Is Offered with Monthly Payments

question 88

Multiple Choice

Effective Annual Rate A loan is offered with monthly payments and a 6.5 percent APR.What is the loan's effective annual rate (EAR) ?

• A)5.69 percent
• B)6.697 percent
• C)7.28 percent
• D)12.63 percent

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Definitions:

S-T Segment

The portion of an ECG tracing between the S and T waves, often analyzed for indications of heart conditions.

Forced Vital Capacity

The total volume of air that can be forcibly exhaled from the lungs after taking the deepest breath possible.

Lungs

Pair of respiratory organs in the chest of vertebrates where blood is oxygenated and carbon dioxide is removed.

Air

The invisible gaseous substance surrounding the earth, a mixture mainly of oxygen and nitrogen.