Use an Annual Percentage Rate Table to Solve the Problem

question 170

Multiple Choice

Use an annual percentage rate table to solve the problem.
-The owner of an automobile repair center purchased new electronic diagnostic equipment for $12,000. He paid 15% down and then paid 60 monthly payments of $192.49. Determine the APR of The loan to the nearest one-half of a percent.

• A) 7.5%
• B) 9.0%
• C) 5.5%
• D) 5.0%

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Definitions:

Compulsion

An intense, often overwhelming urge to carry out an action, particularly one that is illogical or against one's own desires.

Hallucination

A perception of having seen, heard, touched, tasted, or smelled something that isn't actually present, often occurring without an external stimulus.

Delusion

A false belief held with strong conviction despite superior evidence to the contrary, often found in psychiatric conditions such as schizophrenia.

Obsession

Persistent and intrusive thoughts, images, or urges that cause distress or anxiety.