Answered: John takes a car loan for $18,000. The…

John takes a car loan for $18,000. The loan is for 36 months and has an interest rate of 2.5%. There are additional $500 of fees. What is the APR for this loan? 2.5% O 4.5% O 5.3% 9.5%

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 1EB: Everglades Consultants takes out a loan in the amount of $375,000 on April 1. The terms of the loan...

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Risk and return

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Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.

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John takes a car loan for $18,000. The loan is for 36 months and has an interest rate of 2.5%. There are additional $500
of fees. What is the APR for this loan?
O 2.5%
O 4.5%
O 5.3%
O 9.5%
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