What Is the APR on a Loan with an Effective

question 97

Multiple Choice

What is the APR on a loan with an effective annual rate of 15.01% and weekly compounding of interest?

• A) 12.00%
• B) 12.50%
• C) 13.00%
• D) 14.00%

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Definitions:

Partial-Performance Exception

A legal principle that allows for the enforcement of an oral contract when one party has taken significant action based on the agreement, despite the lack of a written contract.

Merger Clauses

Provisions in a contract stating that the written document represents the entire agreement between the parties, negating any oral agreements.

Parol Evidence

The rule that prohibits the use of oral statements or agreements to contradict or vary the terms of a written contract.

Integrated Contract

A written contract intended to be the complete and final representation of the parties’ agreement.