Question: Travis obtained a $ 1 , 0 0 0 loan to be paid back at the end of one year. The lender quoted him an

Travis obtained a $

1, 000

loan to be paid back at the end of one year. The lender quoted him an

11

percent rate of interest and said the finance charges would be figured according to the discount method. Which of the following statements is correct regarding this loan?

.

The APR is higher than

11

percent.

.

All of these.

.

The $

1, 000

plus finance charges will be paid at the end of one year.

.

Travis will receive $

1, 000 .

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