You borrow $1000 and you repay the loan by making total payments of $1200: $100...
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You borrow $1000 and you repay the loan by making total payments of $1200: $100 a month for 12 months. The lender argues that since the loan is for 1 year and the total amount of interest paid is $200, the interest rate is 20 %. What is the APR and effective annual rate on this loan? Is the 20% rate quoted on this loan deceptive
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