A loan is offered with monthly payments and a 9.00 percent APR. What's the loan's effective annual rate (EAR)? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Problem 5-15 Effective Annual Rate (LG5-7)
A loan is offered with monthly payments and a 9.00 percent APR. What's the loan's effective annual rate (EAR)? (Do not round
intermediate calculations and round your final answer to 2 decimal places.)

Answer is complete but not entirely correct.

Effective annual rate
Return
1.09%

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