What Is the Effective Annual Interest Rate on a 9

question 20

Multiple Choice

What is the effective annual interest rate on a 9 percent APR automobile loan that has monthly payments?

• A)9.00 percent
• B)9.38 percent
• C)9.81 percent
• D)10.94 percent Effective rate = (1 + (.09 + 12))¹²-1
• = (1.0075)¹²-1
• = 1)0938-1

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Definitions:

Good Neighbor Policy

A foreign policy of the United States, initiated by President Franklin D. Roosevelt in the 1930s, aimed at strengthening friendly relations and mutual defense with the countries of Latin America.

Franklin D Roosevelt

The 32nd President of the United States, serving from 1933 to 1945, known for leading the country during the Great Depression and World War II with policies including the New Deal.

Latin America

A region in the Western Hemisphere, south of the United States, encompassing countries in Central and South America as well as the Caribbean, distinguished by Romance languages and cultural ties.