Question
You have a student loan for $12,674.00. What number is the rate multiplier in the I = Prt formula if you have an average credit rating?
Secured
Unsecured
Credit
APR (%)
APR (%)
Excellent
5.75
6.15
Good
6.20
6.65
Average
7.15
7.80
Fair
8.95
9.75
Poor
9.90
12.45
(1 point)
Responses
7.15
7.15
7.80
7.80
0.0715
0.0715
0.0780
Secured
Unsecured
Credit
APR (%)
APR (%)
Excellent
5.75
6.15
Good
6.20
6.65
Average
7.15
7.80
Fair
8.95
9.75
Poor
9.90
12.45
(1 point)
Responses
7.15
7.15
7.80
7.80
0.0715
0.0715
0.0780
Answers
GPT-4o mini
In the I = Prt formula, the rate multiplier is represented as the interest rate (r) expressed as a decimal. For an average credit rating, the APR for a secured loan is 7.15% and for an unsecured loan it is 7.80%.
To convert these percentages to decimal format, you divide by 100:
- 7.15% as a decimal is 0.0715.
- 7.80% as a decimal is 0.0780.
Therefore, for an average credit rating, the rate multipliers are:
- 7.15 (for secured loans)
- 7.80 (for unsecured loans)
- 0.0715 (for secured loans in decimal)
- 0.0780 (for unsecured loans in decimal)
If you need to choose the appropriate rate multiplier, it depends on whether the loan is secured or unsecured.
If you're looking for the direct decimal representation of the average credit rating in the I = Prt formula, the options would be:
- 0.0715 (for secured loan)
- 0.0780 (for unsecured loan)
Both 0.0715 and 0.0780 would be correct depending on the type of loan indicated. If you must select from the options, the answer can depend on context, but if referring to the general average for unsecured loans, **0.0780** would be a common choice.
To convert these percentages to decimal format, you divide by 100:
- 7.15% as a decimal is 0.0715.
- 7.80% as a decimal is 0.0780.
Therefore, for an average credit rating, the rate multipliers are:
- 7.15 (for secured loans)
- 7.80 (for unsecured loans)
- 0.0715 (for secured loans in decimal)
- 0.0780 (for unsecured loans in decimal)
If you need to choose the appropriate rate multiplier, it depends on whether the loan is secured or unsecured.
If you're looking for the direct decimal representation of the average credit rating in the I = Prt formula, the options would be:
- 0.0715 (for secured loan)
- 0.0780 (for unsecured loan)
Both 0.0715 and 0.0780 would be correct depending on the type of loan indicated. If you must select from the options, the answer can depend on context, but if referring to the general average for unsecured loans, **0.0780** would be a common choice.