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Commerce · Q360

Financial Management

Graduate and Post Graduate · Commerce · question 360

Q360

An annual rate of 16% if quoted by credit card issuer usually a bank is classified as

A.
loan rate of return
B.
local rate of return
C.
annual percentage rate
Answer
D.
annual rate of return

Answer: Option C

Solution

Answer: Option C
Solution:
An annual rate of 16% if quoted by credit card issuer usually a bank is classified as annual percentage rate. An annual percentage rate (APR) is the annual rate charged for borrowing or earned through an investment. APR is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan.