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27 February, 05:42

A house costs $138,000. It is to be paid off in exactly ten years, with monthly payments of $1675. What is the APR of this loan?

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  1. 27 February, 05:57
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    45.65%

    Explanation:

    Cost of House = $138,000

    Total Annual Payments Cost = $138,000/12

    = $ 13,800

    Total Payments made = $1,675*12*10

    = $ 20,100*10

    = $ 200,100

    APR = (20,100-13,800) / 13,800

    = 45.65%
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