Find the APR to the nearest half percent for a $1800 loan with a finance charge...

Question

Question

Find the APR to the nearest half percent for a $1800 loan with a finance charge of $144 that will be paid over 18 months.

Answer 1

Answer #1

P = 1800

Interest = $144

r = ?

t = 18/12 = 1.5 years

Hence, APR = 5.3% = 5.5% (as we need to round to nearest half percent)

So, 5.5% is the answer for this.

Please comment if any doubt. Thank you.

Answer 2

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