Question
A local finance company quotes a one-year loan at an interest rate of 18 percent. So, if you borrow $19,000, the interest for the year
A local finance company quotes a one-year loan at an interest rate of 18 percent. So, if you borrow $19,000, the interest for the year will be $3,420. Because you must repay a total of $22,420 in one year, the finance company requires you to pay $22,420/12, or $1,868.33, per month over the next 12 months.
What rate would legally have to be quoted? APR
What is the effective annual rate?
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The Essential Credit Repair Handbook
Authors: Deborah McNaughton
1st Edition
160163160X, 978-1601631602
