Joshua borrowed $2,300 for one year and paid $138 in interest. The bank charged him an $15 service charge. If Joshua paid the $2,300 in 12 equal monthly payments, what is the APR? (Round your answer to 1 decimal place
2 answers
138/2,300 = 0.06 = 6%
After visiting several automobile dealerships, Richard selects the car he wants. He likes its $18,500 price, but financing through the dealer is no bargain. He has $3,700 cash for a down payment, so he needs an $14,800 loan. In shopping at several banks for an installment loan, he learns that interest on most automobile loans is quoted at add-on rates. That is, during the life of the loan, interest is paid on the full amount borrowed even though a portion of the principal has been paid back. Richard borrows $14,800 for a period of four years at an add-on interest rate of 11 percent.
What is the total interest on Richard’s loan?
What is the monthly payment?
What is the annual percentage rate (APR)? (Round your answer to 2 decimal places.)
What is the total cost of the car?
What is the total interest on Richard’s loan?
What is the monthly payment?
What is the annual percentage rate (APR)? (Round your answer to 2 decimal places.)
What is the total cost of the car?
2 answers