ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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does nothing to help consumers
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sets the limit one can charge consumers on credit transactions
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attempts to combine all the costs of credit into one figure for ease of understanding
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refers to the number of points one must have on their credit application
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Detailed explanation-1: -Annual percentage rate (APR) refers to the yearly interest rate you’ll pay if you carry a balance on your credit card. Some credit cards have variable APRs, meaning your rate can go up or down over time.
Detailed explanation-2: -The Annual Percentage Rate (APR) is the cost you pay each year to borrow money, including fees, expressed as a percentage. The APR is a broader measure of the cost to you of borrowing money since it reflects not only the interest rate but also the fees that you have to pay to get the loan.
Detailed explanation-3: -Calculating your monthly APR rate can be done in three steps: Step 1: Find your current APR and balance in your credit card statement. Step 2: Divide your current APR by 12 (for the twelve months of the year) to find your monthly periodic rate. Step 3: Multiply that number with the amount of your current balance.
Detailed explanation-4: -Step 1: Find the interest rate and charges. Step 2: Add the fees. Step 3: Divide the sum by the principal balance. Step 4: Divide by the number of days in the loan’s term. Step 5: Multiply by 365. Step 6: Multiply by 100. 17-Oct-2022