Semi-annual loan payment-what is the ear of the loan

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Fairfax Paint just borrowed 68,900 dollars. The terms of the loan require the company to make equal semi-annual payments forever. The first semi-annual payment is due in 6 months. If the regular semi-annual loan payment is 4,250 dollars, then what is the EAR of the loan? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

Reference no: EM131873247

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