What is the approximate annual percentage rate on loan

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A bank customer is granted credit for a $2,000 loan at 10% to be repaid in 12 equal installments.

1. If the loan is a discount loan, what are the net proceeds of the loan?

2. If the loan is a discount loan, what is the monthly payment?

3. If the loan quoted has an add-on rate, what is the approximate annual percentage rate (APR) on the loan?

Reference no: EM131044138

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