Question

MY This Question: 1 pt 1 of 5 (0 complete) о му Cou Cash Down Amount Number of Amount of Finance APR Price Payment Financed Payments Payment Charge $6000 $3000 $3000 12 $260 $ % (Finance charge per $100 of amount financed) Number of payments 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 12 3.00 3.28 3.56 3.83 4.11 4.39 4.66 18 4.41 4.82 5.22 5.63 6.04 6.45 6.86 48 11.63 12.73 13.83 14.94 16.06 17.18 18:31 Ass Stu The finance charge is s Use the APR table to find the APR Gra Cha e Te Too Mul

Answer 1

here amount of payment is 260 per month for 12 months.

total amount paid= 260*12=3120

this include amount financed 3000 and finance charge .

3000+finance charge= 3120

finance charge = 3120-3000=120

so answer is

the finance charge is 120

for this loan finance charge for 3000 = 120

divide both side by 30 . then

finance charge for 100 = 120/30=4

this is 12 month payment and finance charge is 4 .

from given table Apr for 12 month payment with finance charge 4 is not given .

Apr for 3.83 and 4.11 are given . apr for 4 will be between this two .

Apr for 3.83 is 7 . Apr 4.11 is 7.5 .

so for a change of 0.28 Apr change by 0.5% .

from 3.83 to for 4 difference is 0.17 .

change in Apr for 0.17 change = 0.17/0.28* 0.5= 0.3

so Apr for 4 = 7+0.3=7.3

then Apr for 4= 7.3 %

so answer is

Apr = 7.3 %