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:

Probability

The probability or possibility of an event happening.

Incorrectly Reported

A term referring to data or results that have been mistakenly or inaccurately documented or communicated.

Continuous Random Variable

A type of random variable that can take an infinite number of values within a given range.

Continuous Random Variable

A variable that can take on an infinite number of values within a given range, representing quantities that can be subdivided indefinitely.