Question

4. If the monthly finance charge on a loan is 1%, then the A.P.R. on that loan would be
A. 24% B. 12% C. 18% D. 10%

Answer 1

Answer:

B. 12%

Explanation:

Given -  If the monthly finance charge on a loan is 1%

To find - The A.P.R. on that loan would be

1 year = 12 months

Given that, monthly finance charge = 1%

So,

Cumulatively,

Annual Percentage rate (APR) = 12×1% = 12%

So,

The correct option is - B. 12%