Question

Using a calculator and the formula above, calculate the APR. Choose the correct answer.

Betty Buyer has a short term note at 16% interest per year.

To the nearest tenth, APR =
15.9
17.2
16.6

%.

Answer 1

APR=(1+r/12)^(12)-1
APR=(1+0.16÷12)^(12)−1
APR=0.172×100
APR=17.2%