Find the APR (true annual interest rate), to the nearest half percent, for the following loan.

Question

Amount Financed = $1200
Finance Charge = $90
Number of Monthly Payments = 12

Answer 1

$90 divided $1200 = 0.075 x 100 = $7.5

$7.5 = 13.5% APR

Answer 2

could you evaluate how you went from $7.5 = 13.5%