What is the APR on a loan with an effective annual rate of 15.01% and weekly compounding of interest?
A) 12.00%
B) 12.50%
C) 13.00%
D) 14.00%

Question

Quizplus · Accepted Answer

The APR (Annual Percentage Rate) is the nominal interest rate, which can be calculated from the effective annual rate (EAR) using the formula: APR = n * [(1 + EAR)^(1/n) - 1], where n is the number of compounding periods per year. For weekly compounding, n = 52. Solving this gives an APR close to 14.00%.

What Is the APR on a Loan with an Effective