What Is the Annual Percentage Rate on a Loan with a Stated

question 20

Multiple Choice

What is the annual percentage rate on a loan with a stated rate of 2.75 percent per quarter?

• A)11.00 percent
• B)11.09 percent
• C)11.18 percent
• D)11.27 percent
• E)11.31 percent

---

Definitions:

Mean

The statistical measure that divides the sum of all values in a data set by the number of values, commonly known as the average.

Median

A statistical measure representing the middle value in a data set, where half the numbers are above and half are below it.

Median

The middle value in a list of numbers, which separates the higher half from the lower half.

Mean

A statistical measure referring to the average value in a set of numbers, calculated by dividing the sum of all numbers by the quantity of numbers.