The buyer of a new home is quoted a mortgage rate of .5% per month. What is the APR on the loan?
A. .50%
B. 5%
C. 6%
D. 6.5%
Answer: C. 6%
APR = .5% × 12 = 6%
The buyer of a new home is quoted a mortgage rate of .5% per month. What is the APR on the loan?
A. .50%
B. 5%
C. 6%
D. 6.5%
Answer: C. 6%
APR = .5% × 12 = 6%