A Car Dealer Offers Payments of $522

question 35

Multiple Choice

A car dealer offers payments of $522.59 per month for 48 months on a $25,000 car after making a $4,000 down payment.What is the loan's APR?

• A) 6%
• B) 9%
• C) 11%
• D) 12%

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Definitions:

Net Income

Net Income is the total earnings of a company after subtracting all expenses, including taxes and costs, from its total revenue, reflecting the company's profitability.

Average Total Assets

An indicator of a company's operational efficiency, calculated as the average of the total assets over a specific period.

Solvency

The ability of an entity to meet its long-term financial obligations and continue operations into the foreseeable future.

Times Interest Earned Ratio

A financial metric that measures a company's ability to meet its interest obligations, calculated by dividing earnings before interest and taxes by interest expenses.