You are taking out a loan at a 12.5% apr, compounded monthly. What is your effective...

You are taking out a loan at a 12.5% apr, compounded monthly. What is your effective annual rate?

Enter answer in percents, accurate to two decimal places.

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Expert Solution

EAR = [1 + (APR / m)]m − 1

EAR = [1 + (0.125 / 12)]^12 − 1 = 0.1324 or 13.24%

jeff jeffy answered 2 years ago

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