What Is the Effective Annual Interest Rate on a 9

question 32

Multiple Choice

What is the effective annual interest rate on a 9% APR automobile loan that has monthly payments?

• A) 9.00%
• B) 9.38%
• C) 9.81%
• D) 10.94%

---

Definitions:

Operating Assets

Assets required for a company to conduct its daily business operations, including property, plant, and equipment, but excluding investments and non-operational assets.

Cost Center

A department or unit within an organization that does not directly contribute to profit but incurs costs for its operation.

Responsibility Center

Any business segment whose manager has control over costs, revenues, or investments in operating assets.

Queue Time

The duration a product or job order spends waiting to be processed, not including the time actually taken to complete the task.