Find the APR (Rounded to the Nearest Percent) for the Loan

question 7

Multiple Choice

Find the APR (rounded to the nearest percent) for the loan below. Purchased a car for $48,750 at 8.9% add-on interest for 5 years.

• A) \(2 \%\)
• B) \(9 \%\)
• C) \(45 \%\)
• D) \(18 \%\)
• E) \(15 \%\)

Grasp the accrual basis of accounting and its impact on financial reporting and management.

Analyze financial health through liquidity, profitability, asset management, and long-term solvency assessments.

Recognize the development and importance of financial and management policies for organizational governance.

Understand the application and effects of zero-based budgeting on organizational financial planning.

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Definitions:

Inflation

The velocity at which the general cost of goods and services surges, thereby diminishing the purchasing capacity.

Output

The amount of something produced by a person, machine, or industry.

Unemployment

Unemployment refers to the situation in which individuals who are capable of working and willing to work at prevailing wage rates cannot find employment.

Sacrifice Ratio

An economic term that quantifies the effect of decreasing inflation on an economy, typically measured as the percentage loss in output per one percentage point decrease in inflation.