6
QuizMultiple Choice

Installment Loans

Question 6 • Applications and Modeling

# of Monthly PaymentsAnnual Percentage Rate (APR) 11%11.5%12%12.5%13%13.5%14%14.5%15%3517.3518.1819.0119.8520.6921.5322.3823.2314.083617.8618.7118.5720.4321.3022.1723.0423.9224.80Above is a table that gives the interest per every $100 financed. Use the table to determine the annual percentage rate for a 36 month loan that charges $24.80 per every $100 financed.

Answer
A
13%
B
14%
C
15%
D
16%

Explanation

Find the row for 36 monthly payments, then locate $24.80 per $100 financed. That value is in the column for a 15% APR, so the annual percentage rate is 15%.

AI-written and checked against the verified answer.

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