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The Annual Percentage Rate (APR) on Short-Term Loans from Bank

Question 139

Essay

The annual percentage rate (APR) on short-term loans from Bank A is 5.75% per year. Bank B claims that their interest rate is only 5.44% per year. However, Bank B charges interest on a discount basis. Which bank is charging the lowest APR on a one-year loan?

Correct Answer:

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APR from Bank A = 5.75%
APR fr...

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