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A local finance company quotes an interest rate of 16.2 percent on one-year loans. So, if you borrow $33,000, the interest for the year will be $5,346. Because you must repay a total of $38,346 in one year, the finance company requires you to pay $38,346/12, or $3,195.50 per month over the next 12 months.
What rate would legally have to be quoted?(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
What is the effective annual rate?(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
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Bart Industries is about to be purchased by Kramer Enterprises. Both firms are in the rocks and mineral industry. As one of the founders of Bart Industries, you are concerned about the value of the equity in the firm. You have acquired the foll..
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