You borrow 13000 from a bank for three years at an annual, Business Economics

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You borrow 13000 from a bank for three years at an annual

You borrow $13,000 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.

What is your monthly payment?

If you must pay two months up front, meaning that your get only $12,740 from the bank, what is your true APR on the loan?

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Business Economics: You borrow 13000 from a bank for three years at an annual

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Business Economics: You borrow 13000 from a bank for three years at an annual

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