Question

What is the annual percentage rate on a loan with a stated rate of 2.75 percent per quarter?A. 11.00 percentB. 11.09 percentC. 11.18 percentD. 11.27 percentE. 11.31 percent

Answer 1

Answer:

A. 11.00 percent

Explanation:

The computation of the annual percentage rate is shown below:-

Annual percentage rate = Percentage of stated rate × Number of quarters per year

= 2.75% × 4

= 11%

Therefore for computing the annual percentage rate we simply applied the above formula i.e multiplying the percentage of the stated rate with the number of quarters in a year  

So, the correct option is A.