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A Loan Has an APR of 8

Question 38

Multiple Choice

A loan has an APR of 8.5 percent and an EAR of 8.5 percent.Given this, the loan must:


A) have a one-year term.
B) have a zero percent interest rate.
C) charge interest annually.
D) must be partially amortized with each loan payment.
E) require the accrued interest be paid in full with each monthly payment.

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