Problem
A bank is offering a loan of $25,000 with a nominal interest rate of 18% compoundedmonthly, payable in 60 months.
(a) What is the monthly payment?
(b) If a loan origination fee of 2% is charged at the time of the loan, what is the effective interest rate?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.