Monthly payments will be made until all the principal and, Business Economics

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Monthly payments will be made until all the principal and

You borrow ?$10,000 from a bank for three years at an annual interest? rate, or annual percentage rate?(APR), of 12?%.

Monthly payments will be made until all the principal and interest have been repaid.

a. What is your monthly? payment?

b. If you must pay two points up? front, meaning that you get only ?$9,800 from the? bank, what is your true APR on the? loan?

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