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
AnswerD.
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.