### What is effective annual interest rate on the loan

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##### Reference no: EM131523311

Assume you take out a car loan of \$8,600 that calls for 48 monthly payments of \$300 each.

a. What is the APR of the loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Use a financial calculator or Excel.) APR %

b. What is the effective annual interest rate on the loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) EAR %

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