Youve borrowed 206765 and agreed to pay back the loan with


You've borrowed $2,067.65 and agreed to pay back the loan with monthly payments of $130. If the interest rate is 9% stated as an APR.

a. How long will it take you to pay back the loan?

b. What is the effective annual rate on the loan?

 

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Finance Basics: Youve borrowed 206765 and agreed to pay back the loan with
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