What is the ear of the loan

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Reference no: EM131829118

1. Vito Corleone will loan you money on a five-for-six arrangement, for every $5 he gives you today, you owe him $6 in one week. What is the EAR of the loan?

2. Find the APR (the stated interest rate) for each case. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Effective Annual Interest Rate Compounding Period APR 14.71 % 1 month % 6.81 6 months % 9.74 3 months %

Reference no: EM131829118

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