Question

Using a calculator and the above formula what is the APR. Choose the correct answer. Jim Tree buys his stock on credit at 14%. To the nearest tenth, APR = %.

Answer 1

Hi there

APR=(1+r/12)^(12)-1)
APR=((1+0.14÷12)^(12)−1)×100
APR=14.93%

Hope it helps

Answer 2

APR for the given given credit rate of 14% is 14.9%

Explanation:

Rate of Credit = 14%

Time = 1 year = 12 months

The Annual Principal Rate or APR is calculated by using the formula :

`APR = [(1-(Rate)/(12* 100))^(Time)-1]* 100\\\\APR =[ (1 - (14)/(1200))^(12)-1]* 100\\\\APR = [1.1493-1]* 100\\\\\implies\bf APR=14.93\%`

Hence, APR for the given given credit rate of 14% is 14.9%