## To find the APR (Annual Percentage Rate) for the given data, we need to follow a few steps:

Step 1: Subtract the down payment from the purchase price.

Purchase price after down payment = $3500 - $500 = $3000

Step 2: Calculate the total interest paid over the loan term.

Total interest = Purchase price * Add-on interest rate * Number of payments

= $3000 * 7% * 18

= $3780

Step 3: Determine the total amount paid over the loan term (purchase price + total interest).

Total amount paid = Purchase price + Total interest

= $3000 + $3780

= $6780

Step 4: Calculate the monthly payment.

Monthly payment = Total amount paid / Number of payments

= $6780 / 18

= $376.67 (rounded to 2 decimal places)

Step 5: Determine the nominal interest rate.

Nominal interest rate = (Total amount paid - Purchase price) / Purchase price

= ($6780 - $3000) / $3000

= 1.26 (or 126%)

Step 6: Convert the nominal interest rate to APR, rounding to the nearest half percent.

APR = Nominal interest rate / Number of payments

= 1.26 / 18

= 0.07 (rounded to 2 decimal places)

= 7% (to the nearest whole percent)

Therefore, the APR for the given data is 7% to the nearest half percent.