Find the APR (True Annual Interest Rate), to the Nearest

question 72

Multiple Choice

Find the APR (true annual interest rate) , to the nearest half percent, for the following.
-Amount financed: $7300 Monthly payment: $188.67
Number of payments: 48

• A)8%
• B)12%
• C)11%
• D)9%

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Definitions:

Proportional Tax

A tax system where the tax rate remains constant regardless of the amount subject to tax, also known as a flat tax.

Taxable Income

The portion of income that is subject to taxation after all deductions, exemptions, and adjustments have been applied.

Form 1040EZ

A simplified federal income tax form for individual taxpayers with no dependents, essentially not in use after the 2018 tax year, replaced by the revised Form 1040.

Taxable Income

The segment of a person's or business's earnings that is assessed to calculate the amount of taxes due to the government.