Test Review: Unit 6 (Part A)

Front

What is the formula to calculate the Annual Percentage Rate (APR) from a monthly periodic rate?

Back

APR = Monthly Periodic Rate × 12

Front

What is a federal student loan?

Back

A federal student loan is a loan provided by the US Federal government to help students pay for their education.

Front

If Sheila’s monthly periodic rate is 2.41%, what is her APR?

Back

28.92% (APR = 2.41% × 12)