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Question
The Arthos Group needs to borrow $200,000 from its bank. The bank has offered the company a 12-month installment loan (monthly payments) with 9 percent add-on interest. What is the effective annual rate (EAR) of this loan?a. 16.22%
b. 17.97%
c. 17.48%
d. 18.67%
e. 18.00%
Answer
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