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[arrigo]

1. You want to buy a new sports coupe for $68,500, and the finance office at the dealership has quoted you a 6.9 percent APR loan for 60 months to buy the car. Your monthly payment will be $______ and the effective annual rate on this loan is _____percent.


2. Barcain Credit Corp. wants to earn an effective annual return on its consumer loans of 16 percent per year. The bank uses daily compounding on its loans. By law, the bank is required to report to potential borrowers an interest rate of _____percent.