Chapter 7-Question 10 Your uncle lends you $2,100 less $84 (interest at 4 percent), and you...
Chapter 7-Question 10
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Your uncle lends you $2,100 less $84 (interest at 4 percent), and you receive $2,016. Use the APR formula to find the true annual percentage rate. Assume you repay the entire loan in one year. (Enter your answer as a percent rounded to 3 decimal places.) |
Homework Answers
APR = (2 × n × I) / [P × (N + 1)]
= (2 × 1 × $84) / [$2,016 × (1 + 1)]
= 0.04167, or 4.167%
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Chapter 7-Question 10
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