The Annual Percentage Rate (APR)is Calculated as Which of the Following

question 78

Multiple Choice

The annual percentage rate (APR) is calculated as which of the following?

• A)Interest rate per period x compounding periods per year
• B)(1+quoted annual rate/compounding periods per year)compounding periods per year-1
• C)Interest rate per period / compounding periods per year
• D)1+quoted annual rate/compounding periods per year)1/compounding periods per year-1

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Definitions:

Initial Sales

The first sales activity that occurs when a product or service is introduced to the market.

Operations

The day-to-day activities involved in running a business and producing goods or services efficiently.

Small Business Administration

A U.S. government agency that provides support to entrepreneurs and small businesses in the form of loans, loan guarantees, counseling, and other resources.

Major Lending Source

A primary institution or entity that provides significant amounts of capital or loans to individuals or businesses for various purposes such as investment, purchasing, or expansion.