Quiz 4 Review

If the APR on your credit card is 28.5%. What would be the interest rate applied to your monthly bill?

• 28.5%

• .285%

• 2.375%

Answer explanation

APR is the interest rate for the whole year, therefore each month 1/12th of the APR is applied.

28.5/12 = 2.375

A(n) ______ _______ is a loan repaid in equal payments over a specified period of time

• single payment loan 
• installment loan
• maturity value 
• ordinary interest 

Jaclyn has decided to purchase an $11,000 car. She plans on putting $1000 down toward the purchase, and financing the rest at 4.8% interest rate for 3 years. How much will Jaclyn pay back?

• $1440

• $10,000

• $11,440.0

• $11,000.00