Find the Annual Percentage Rate Using the Table

question 55

Multiple Choice

Find the annual percentage rate using the table.

-Eileen purchased a sofa for $540 and financed it for 17 months. The total finance charge was $85.48. Find the annual percentage rate.

• A) 20.00%
• B) 20.25%
• C) 20.50%
• D) 20.75%

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Definitions:

Accounts Payable

Liabilities owed by a business to its suppliers or creditors for goods or services received.

Cost-Benefit Considerations

The process of weighing the total expected costs against the total expected benefits of one or more actions in order to choose the best or most profitable option.

Risk Assessment

The process of identifying, analyzing, and evaluating the risks involved in a certain situation or for a specific investment.

Protect Assets

Measures or strategies implemented by a company or individual to safeguard physical and intangible assets from loss, damage, or theft.