Determining Rates of Return and Effective Interest Rates

The Business
Development Bank is willing to loan Su Mei the $25,000 she needs to start her
new company. The loan will require monthly payments of $556.11 over five years.
A. What is the effective monthly rate on this loan?
B. With
monthly compounding, what is the nominal (annual) interest rate on this loan?
Topic: Determining Rates of Return and Effective
Interest Rates
Level of difficulty: Medium