Calculate the Average Percentage Rate (APR)for an Add-On Loan with 36

question 49

Essay

Calculate the average percentage rate (APR)for an add-on loan with 36 monthly installments.The principal is $4,000; the stated interest rate is 6%.

---

Definitions:

Parameter

A numerical characteristic that describes and summarizes an aspect of a population in statistics.

Unbiased Estimator

A statistical estimator whose expected value is equal to the parameter being estimated, indicating accuracy across samples.

Expected Value

The long-run average value of repetitions of the same experiment or random process, calculated as the sum of all possible values weighted by their probabilities of occurrence.

Parameter

A numerical characteristic or feature of a population that is estimated using sample data.