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How Do You Approximate the APR on an Add-On Interest

Question 72

Multiple Choice

How do you approximate the APR on an add-on interest loan?


A) Total annual finance charges as a percentage of half the original loan amount
B) Nominal rate multiplied by the face value of the loan
C) Nominal rate multiplied by the average outstanding loan balance
D) Total annual finance charges as a percentage of the loan amount

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