Travis Obtained a $1,000 Loan to Be Paid Back at the End

question 57

Multiple Choice

Travis obtained a $1,000 loan to be paid back at the end of one year.The lender quoted him an 11 percent rate of interest and said the finance charges would be figured according to the discount method.Which of the following statements is correct regarding this loan?

• A)The APR is higher than 11 percent.
• B)Travis will receive $1,000.
• C)The $1,000 plus finance charges will be paid at the end of one year.
• D)All of these.

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Definitions:

Matched Set

Items that are manufactured or selected to work together optimally, often referring to parts that are used together in machinery or systems.

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Never-Seize Compound

A protective lubricant designed to prevent seizing, galling, and corrosion between metal parts in extreme conditions.

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