Use the Information for the Question(s) Below

Use the information for the question(s) below.
Two years ago you purchased a new SUV. You financed your SUV for 60 months (with payments made at the end of the month) with a loan at 5.9% APR. Your monthly payments are $617.16 and you have just made your 24th monthly payment on your SUV.
-Amortizing loans are the loans that have monthly payments and are quoted in terms of ________ with ________ compounding.

A) an effective rate; annual
B) an equivalent rate; annual
C) an annual percentage rate; monthly
D) a nominal rate; semiannual

Correct Answer:

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