What is effective interest rate-calculate monthly payment

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Reference no: EM13998763

A bank is offering a loan of $12,000 with a yearly interest rate of 12% compounded monthly and payable in 48 months.

a) Calculate the monthly payments

b) This bank also charges a loan fee of 4% charged at the time of the closing of the loan. What is the effective interest rate?

Please draw cash flow diagrams.

Reference no: EM13998763

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