Use formula APR=2Nr/N+1
2(36)(.20)/36+1
The first equation =14.40
bottom equation= 37
Divide 14.40/37=0.389189
change decimal to a percent so, 0.389189=39 rounded
so, N=time turned into month, so intead of time being 3, it is 36 because 3 years equals 36
Find the APR for the following loan (monthly payments). (Round your answer to the nearest full percent.)
Purchase a refrigerator for $2,100 at 20% add-on interest for 3 years.
1 answer
1 answer