The percentage of the outstanding principle that Person X pays has as an interest for each month. Introduction: An Annual Percentage rate is the amount of simple interest earned in one year without the effect of compounding. This includes the additional fees with the transaction but does not consider compounding.

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Chapter 5, Problem 11P

Summary Introduction

To determine: The percentage of the outstanding principle that Person X pays has as an interest for each month.

Introduction:

An Annual Percentage rate is the amount of simple interest earned in one year without the effect of compounding. This includes the additional fees with the transaction but does not consider compounding.

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