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Your insurance premium for your autos are due and you have two options:Option 1 - Pay the full amount of $1,200 now.
Option 2 - Pay $205 now and 5 monthly payments of $205 with the first payment starting in a month.
What is the APR you are actually paying if you choose the installment Option 2?
Use monthly compounding and carry your answer two decimal points. (76.25% would be entered 76.25)
11.98%
What would the Effective Annual Rate be if you pursued the installment option?
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