3
QuizMultiple Choice

Installment Loans

Question 3 • Applications and Modeling

You have just taken out a $2,650 loan from your local bank. You paid off the loan in 1 year by making 12 monthly payments with a total interest charge of $300.00. Determine, from the information given, the annual percentage rate (APR). Round your answer to the nearest hundredth of a percent.

Answer
A
7.91%
B
79.1%
C
20.25%
D
2.09%
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