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a generic tag for question on rate of interest applicable. Ideally should be accompanied by geography tag and other specific subject tags

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Effective Interest Rate Interpretation

Assume a $1,000 loan for 24 months, with monthly interest rate 2.5%, and monthly payments ($55.91 as calculated by any online tool, e.g. here). This will give us annual interest rate (air) of 30%, a …
Tomas Greif's user avatar