Chapter 18, Problem 3BIC

n the credit account statement below, the values of the annual percentage rate (APR), finance charge, and the new balance must be calculated. PreviousBalance AnnualPercentageRate (APR) MonthlyPeriodicRate(as a %) FinanceCharge(in $) Purchasesand CashAdvances PaymentsandCredits NewBalance(in $) $1,026.61   1.75%   $322.20 $300.00   Recall that the annual percentage rate (APR) is tied to the monthly periodic rate by the following formula. monthly periodic rate =  APR 12 By solving this equation for the APR, the known value for the monthly periodic rate can be substituted to calculate the APR. APR = monthly periodic rate ✕ 12 The monthly periodic rate is given to be 1.75%. Find the APR. APR  =  12 ✕ monthly periodic rate    =  12 ✕ ____ %    =   ____%

Calculate the finance charge (in $), the finance charge per $100 (in $), and the annual percentage rate for the installment loan by using the APR table, Table 13-1. (Round dollar amounts to the nearest cent.)

Which of the following is an instrument of monetary policy? The interest rate on three-month Treasury bills The mortgage interest rate The budget deficit The discount rate