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Your uncle lends you $5,800 less $232 (interest at 4 percent), and you receive $5,568. Use...

Your uncle lends you $5,800 less $232 (interest at 4 percent), and you receive $5,568. 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.)
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Answer #1

APR = Future Value / Present Value - 1

APR = (5800 / 5568) - 1

APR =1.04167 - 1

APR = 4.167%

Therefore true annual % rate = 4.167% p.a.

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