1) Virginia has just been quoted what appears to be a very competitive loan for $2,000 to be paid back in 24 monthly payments of $96.66 with a finance charge of $240. Using the n-ratio method of estimating the APR, what is the APR on this loan?

2) Travis obtained a $1,000 loan to be paid back at the end of one year. The lender quoted him an 11 percent rate of interest and said the finance charges would be figured according to the discount method. Which of the following statements is correct regarding this loan?

a. Travis will receive $1,000

b.the $1,000 plus finance charges will be paid at the end of one year.

c. This APR is higher than 11 percent.

d. All of these choices are correct.