Question
A newlywed couple bought a washer and dryer for $800. They paid 5% down and then paid 12 monthly payments of $65.41. Determine the APR of the loan to the nearest tenth of a percent.
Answers
Henry
Po = 800 - 0.05*800 = $760
P = 65.41/mo. * 12mo. = $784.92
I = P-Po = 784.92 - 760 = $24.92
%I = (I/Po)*100% = (24.92/760)*100% =
3.3 = APR.
P = 65.41/mo. * 12mo. = $784.92
I = P-Po = 784.92 - 760 = $24.92
%I = (I/Po)*100% = (24.92/760)*100% =
3.3 = APR.