### What is the effective and nominal interest per year

##### Reference no: EM13898668

George bought a car for \$26,500. He made a down-payment of \$4,500 and financed the rest on a 5-year term with a monthly payment of \$575.

a) What is the interest rate per month for the loan?

b) What is the nominal interest per year?

c) What is the effective interest per year?

#### Simple supply and demand model

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