What Is the Effective Interest Rate for a Car Loan

question 28

Multiple Choice

What is the effective interest rate for a car loan advertised at five percent compounded monthly?

• A)5)1%
• B)5)2%
• C)5)3%
• D)5)4%

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Definitions:

Day-Care Grandparents

Older adults who provide childcare support, often part of informal or formal caregiving arrangements.

Physical Care

The provision of tangible support to someone, including help with mobility, personal hygiene, and health needs.

Grandchildren

The offspring of an individual's son or daughter.

Custodial Grandparents

Grandparents who are the primary caregivers of their grandchildren, often due to the absence or incapacity of the parents.