Use an Annual Percentage Rate Table to Solve the Problem

question 86

Multiple Choice

Use an annual percentage rate table to solve the problem.
-In order to purchase a residential homesite, a man borrows $45,000 from his father. The son pays His father back by making 60 monthly payments of $891.08. Determine the APR of the loan to the Nearest one-half of a percent.

• A) 8.5%
• B) 7.0%
• C) 7.5%
• D) 9.0%

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Definitions:

Monopolistically Competitive

A market structure in which many companies sell products that are similar but not identical.

Product Differentiation

The marketing process of distinguishing a product or service from others in the market to make it more attractive to a particular target market.

Demand Curve

A graph representing the relationship between the price of a good and the quantity demanded by consumers.

Barriers To Entry

Are obstacles that make it difficult for new competitors to enter a market, including high startup costs, strict regulations, and established brand loyalty among consumers.