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

question 215

Multiple Choice

Find the APR (true annual interest rate) , to the nearest half percent, for the following loan.
-Amount Financed = $3400 Finance Charge = $470
Number of Monthly Payments = 36

• A)8.5%
• B)9.5%
• C)9%
• D)8%

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Definitions:

Standard Deviation

A statistical measure of the dispersion or variability in a data set, commonly used to gauge the risk associated with a financial investment.

Defined Contribution Plan

A retirement savings plan where contributions are defined, but future benefits depend on investment performance.

Risk-free Return

The theoretical return on investment with no risk of financial loss, often represented by the yield on risk-free government bonds.

Standard Deviation

A measure of the dispersion or variability of a set of data points from their mean, used in finance to indicate the volatility of an investment.