To determine the annual percentage rate (APR) for a 12-month loan that charges [tex]$8.31 per every $[/tex]100 financed, we can refer to the provided table. The table gives the interest per every [tex]$100 financed for different APRs over 12 months.
Let's analyze the table data for a 12-month loan:
- For 11%, the interest is $[/tex]6.06
- For 12%, the interest is [tex]$6.62
- For 13%, the interest is $[/tex]7.18
- For 14%, the interest is [tex]$7.74
- For 15%, the interest is $[/tex]8.31
- For 16%, the interest is [tex]$8.88
- For 17%, the interest is $[/tex]9.45
- For 18%, the interest is [tex]$10.02
- For 19%, the interest is $[/tex]10.59
According to the table:
- At 15%, the interest for 12 months is [tex]$8.31 per $[/tex]100 financed.
Since the loan in question charges [tex]$8.31 per every $[/tex]100 financed, which directly matches the provided interest for a 15% APR, we can conclude that the annual percentage rate for this loan is:
15% (Answer choice c)
