A finance company offers a "3% plan". The cost of a one-year loan is 3%,...
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Accounting
A finance company offers a "3% plan". The cost of a one-year loan is 3%, and this cost is added to the loan. This total is then divided by 12 to get the monthly payments. Calculate the effective interest rate being charged for a loan of $8,000.
- 5.63% per year
- 4.68% per year
- 5.49% per year
- 0.46% per month
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