Using the add-on method, calculate the APR of a loan for $12,150 at 9.5% for 3...

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Using the add-on method, calculate the APR of a loan for $12,150 at 9.5% for 3...

Using the add-on method, calculate the APR of a loan for $12,150 at 9.5% for 3 years. (Do not round intermediate calculations. Round your answer to the nearest tenth percent.)

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Answer 1

Answer #1

Function Arguments ? x RATE 1 1 Nper 3*12 Pmt -12150*(1 +9.5%*3)/36 PV 12150 Fv o Type o = 36 = -433.6875 = 12150 1 = 0 = 0.0

Hence, APR is 17.08% (1.42%*12)

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Answer 2

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Using the add-on method, calculate the APR of a loan for $12,150 at 9.5% for 3...

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