Find the APR (True Annual Interest Rate), to the Nearest $= \$ 1200$

question 227

Multiple Choice

Find the APR (true annual interest rate) , to the nearest half percent, for the following loan.
-Amount Financed $= \$ 1200$
Finance Charge $= \$ 90$
Number of Monthly Payments $= 12$

• A) \(12 \%\)
• B) \(12.5 \%\)
• C) \(13 \%\)
• D) \(13.5 \%\)

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Definitions:

Absorption Costing

An accounting method that allocates all manufacturing costs, including both fixed and variable costs, to the product, used for external financial reporting and tax purposes.

Contribution Format

A type of income statement format that separates fixed costs from variable costs to highlight the contribution margin.

Income Statement

A financial report that shows a company’s revenues, expenses, and net income over a specific period, illustrating the company’s financial performance.

Reconcile

A process of ensuring two sets of records (usually the balances of two accounts) are in agreement.