What Is the Annual Percentage Rate on a Loan with a Stated

question 187

Multiple Choice

What is the annual percentage rate on a loan with a stated rate of 3% per quarter?

• A) 11.60%
• B) 11.75%
• C) 12.00%
• D) 12.25%
• E) 12.55%

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Definitions:

Cisg

The United Nations Convention on Contracts for the International Sale of Goods, a treaty that establishes a uniform framework for international commerce.

Merchant

An individual or company engaged in the buying and selling of goods, especially on a large scale or with international trade.

Article 2

Part of the Uniform Commercial Code that governs the sale of goods in the United States.

Good Faith

The honest intent to act without taking an unfair advantage over another party in a contractual or negotiation context.