Solve the Problem

question 85

Multiple Choice

Solve the problem. Use the approximate APR formula to estimate the APR, and round rates to the nearest tenth of a percent.
-Eddie Hodges buys a complete stereo with CD for $980, paying it off at $46.19 per month for 2 years. What is the approximate APR of the loan?

• A)12.6%
• B)13.1%
• C)11.4%
• D)12.1%

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Definitions:

Coal Mine Pollution

Coal mine pollution involves the release of harmful substances into the environment as a result of coal mining activities, which can include air and water pollution, soil degradation, and ecological disruption.

Marginal Social Cost

The total cost to society of producing an additional unit of a good or service, including both private costs and any external costs.

Coal Mine Pollution

Environmental contamination resulting from the operations of coal mining, including air and water pollution, soil degradation, and ecosystem disruption.

MSB = MSC

MSB (Marginal Social Benefit) equals MSC (Marginal Social Cost) represents the point of allocative efficiency in goods and services production, where social welfare is maximized.