Your company has just taken out a loan for $75,000. The stated interest rate on this loan is 10 percent, but the loan is an add-on loan which will be repaid in 12 equal monthly installments, beginning at the end of the first month. How large are your company's monthly payments?
a. $7,500 b. $5,250 c. $6,250 d. $6,664 e. $6,875
What is the effective annual interest rate on this loan?
a. 10.00%
b. 19.56%
c. 18.00%
d. 10.47%
e. 20.00%