Answer to Question #74 in Finance for firstname.lastname@example.org
What is the effective monthly rate over 7.3 years on a loan whose compound monthly rate is 5.475%?
You have to calculate your compound interest rate for 7.3 years. Then you have to divide it on number of months (7.3*12). So correct answer is:
[(1+0,05475)^(7.3*12)]/(7.3*12) = 0,217 (or 21,7%)
Learn more about our help with Assignments: Finance