please help me thanks :)

Paul needs to repay a loan(installment loan) of $3,500 with 20 equal monthly payments of $196 each. What is the APR of the laon?
I got 11.16% then I got 12 % so I don't know

1 answer

Paul needs to repay a loan(installment loan) of $3,500 with 20 equal monthly payments of $196 each. What is the APR of the laon?
I got 11.16% then I got 12 % so I don't know

From R = Pi/[1 - (1+i)^-n]

Using an APR of 13.25% compounded monthly:

R = 3500(.011041666)/[1-(1.011041666)^-20] = $196.00.