MsSmith Borrowed $1,250 at an 11% Stated Rate of Interest

question 110

Multiple Choice

Ms.Smith borrowed $1,250 at an 11% stated rate of interest and was to pay back the installment loan in 24 monthly payments.What is her annual rate of interest?

• A) 10.56%
• B) 11.60%.
• C) 18.96%
• D) 22.00%

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Definitions:

Technical Competence

The ability and skills to perform specific tasks and functions related to a specific field of work or study.

Knowledge

Information, understanding, or skill acquired through experience or education; the theoretical or practical understanding of a subject.

Cognitive Skills

Mental capabilities that are involved in processing information, such as memory, reasoning, problem-solving, and attention.

Critical Thinking

The ability to analyze information objectively and make a reasoned judgment by evaluating evidence, analyzing assumptions, and understanding logical connections.