What Is the Annual Percentage Rate (APR) of a Loan

question 7

Multiple Choice

What is the Annual Percentage Rate (APR) of a loan with Nominal Rate of 8% and a Compounding Period of 3 months (n = 4) (1 decimal place) ?

• A) 8.2%
• B) 8.1%
• C) 8.0%
• D) 7.9%

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Definitions:

Different Parts

This refers to the various components or sections that make up a whole; in a system or machine, it refers to the distinct elements that perform specific functions.

Self-Determination Theory

The idea that people function best when they feel that their actions stem from their own desires rather than from external forces.

Intrinsic Motivation

The drive to engage in an activity for its own sake and the personal gratification it brings, rather than for some external reward.

Extrinsic Motivation

The drive to perform actions or engage in behaviors due to external rewards or pressures rather than for intrinsic satisfaction.