Ms Smith Borrowed $1,250 at a 11% Stated Rate of Interest

question 94

Multiple Choice

Ms. Smith borrowed $1,250 at a 11% stated rate of interest and was to pay back the loan in 24 monthly payments. What is her annual rate of interest?

• A) 10.56%
• B) 21.12%
• C) 18.96%
• D) 22.00%

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations using its current assets.