Use an Annual Percentage Rate Table to Solve the Problem

question 95

Multiple Choice

Use an annual percentage rate table to solve the problem.
-A newlywed couple bought a washer and dryer for $800. They paid 10% down and then paid 12 Monthly payments of $61.97. Determine the APR of the loan to the nearest one-half of a percent.

• A) 6.0%
• B) 7.5%
• C) 5.5%
• D) 8.0%

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Definitions:

Normal Population

A statistical population where the data points are distributed evenly around the mean, typically forming a bell-shaped curve known as a normal distribution.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true, often denoted by alpha and used to determine the threshold for statistical significance.

Test Statistic

A numerical value calculated from sample data that is used in a statistical test to evaluate the plausibility of a hypothesis about a population parameter.

November Low Temperature

The minimum temperature recorded or expected in the month of November, often used in climate and weather analysis.