To borrow $3,200, you are offered an add-on interest loan at 9.8 percent with 12 monthly payments. Compute the 12 equal payments. (Round your answer...
View the step-by-step solution to:

Question

To borrow $3,200, you are offered an add-on interest loan at 9.8 percent with 12 monthly payments. Compute the 12

equal payments. (Round your answer to 2 decimal places.) Use the amount you borrowed and the monthly payments you computed to calculate the APR of the loan. Then, use that APR to compute the EAR of the loan. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Top Answer

equal monthly payments under add-on... View the full answer

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question