Assuming That You Can Afford a Car Payment of $400

Multiple Choice

Assuming that you can afford a car payment of $400 for 36 months,which of the following is closest to the annual interest rate you would need on a loan to borrow $12,000 for a new car?

A) 10.99 percent
B) 11.26 percent
C) 12.25 percent
D) 12.99 percent