### Annuity Payment and EAR

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Annuity Payment and EAR

You want to buy a car, and a local bank will lend you \$10,000. The loan would be fully amortized over 5 years (60 months), and the nominal interest rate would be 6%, with interest paid monthly. What is the monthly loan payment? Round your answer to the nearest cent.

What is the loan's EFF%? Round your answer to two decimal places.

%

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