What effect do the closing costs have on the effective air

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Reference no: EM131518117

Question: The bank charges $500 for closing costs on a $17,000 loan with an annual percentage rate of 11% compounded monthly with a term of five years. The bank will not allow the closing costs to be added to the $17,000 borrowed. What effect do the closing costs have on the effective annual interest rate(AIR)?

Reference no: EM131518117

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