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Bank USA offers a semiannual interest rate of 0.7%, what is the APR (annual percentage rate)?...

Bank USA offers a semiannual interest rate of 0.7%, what is the APR (annual percentage rate)?

A. 0.700%

B. 1.400%

C. 1.1405%

D. 2.800%

E. 7%

Solutions

Expert Solution

Semi-annual Interest rate = 0.7%

Annual Percentage Rate(APR) = Semi-annual Interest rate*2

= 0.7%*2

= 1.4%

SO, APR is 1.4%

Option B

jeff jeffy answered 2 years ago
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