What Is the APR on a Loan That Charges Interest

question 114

Multiple Choice

What is the APR on a loan that charges interest at the rate of 1.4 percent per month?

• A)10.20 percent
• B)14.00 percent
• C)16.80 percent
• D)18.16 percent

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Definitions:

Marginal Utility

The increased happiness a buyer experiences by consuming an extra unit of a product or service.

Consumer Surplus

Consumer surplus is the difference between what consumers are willing to pay for a good or service and what they actually pay, measuring consumer satisfaction.

Consumer Surplus

The discrepancy between what consumers are ready and capable of paying for a product or service and what they end up actually spending.

Alfred Marshall

A British economist, known for his significant contributions to classical economics, especially his work on the principles of economics, including the theories of supply and demand.