Use an Annual Percentage Rate Table to Solve the Problem

question 169

Multiple Choice

Use an annual percentage rate table to solve the problem.
-A student has a total of $2000 in student loans that will be paid with a 48-month installment loan With monthly payments of $49.30. Determine the APR of the loan to the nearest one-half of a Percent.

• A) 8.5%
• B) 7.5%
• C) 9.5%
• D) 8.0%

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Definitions:

Total Cost

The sum of all expenses incurred in the production of goods or services, including fixed and variable costs.

Monthly Production Volume

The total quantity of goods produced by a business in a month, often analyzed to gauge efficiency, plan inventory needs, or assess production capacity.

Total Cost

The sum of all expenses incurred in the production of goods or services, including both fixed and variable costs.

Mixed Cost

Expenses that have both fixed and variable components, changing partially in response to an alteration in business activity level.