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23.6% interest rate of "simple" interest (ie, non-NPV accounting). Pay 103 per month for 12 months. = $1236 per $1000.

I get that math if it explicitly said that this is a 1 year loan - but it doesn't. How do you know this wasn't a 4 year loan? and you pay $103 per month for 4 years?

or how do you know that this wasn't an "interest only loan" and you pay $103 in interest every month... and if you want to pay down any principle, then that would be anything that you pay above $103/month.

It says 12 equal monthly payments. 4 years would be 48 monthly payments. The terms of the loan are clearly stared.

I see how it can be read that way, but it is far from clear. Not to mention that the design of the 'ad' makes it susceptible to misinterpretation.

That's the point right?

The problem is very clear when you read it carefully. Which is also one of the skills its trying to tease out. It is rated as a 5 out of 5 being the most difficult.

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