You have an outstanding student loan with required payments of $500 per month for the next four years. The interest rate

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answerhappygod
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You have an outstanding student loan with required payments of $500 per month for the next four years. The interest rate

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You have an outstanding student loan with required payments of
$500 per month for the next four years. The interest rate on the
loan is 9.75% APR​ (compounded monthly). You are considering
making an extra payment of $100 today​ (that is, you will pay
an extra $100 that you are not required to​ pay).
b. What effective rate of return​ (expressed as an APR with
monthly​ compounding) have you earned on the $100​?
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