Ask Question
5 July, 03:31

You want to borrow $38,400 and can afford monthly payments of $960 for 48 months, but no more. assume monthly compounding. what is the highest apr rate you can afford?

+5
Answers (1)
  1. 5 July, 03:34
    0
    To calculate the APR, we first calculate the monthly rate and then the APR (Annual percentage rate)

    Monthly rate is calculated by using RATE function in excel as in = RATE (NPER, PMT, PV) where

    NPER = number of period in months = 48

    PMT = Monthly payment = 960

    PV = Loan value = 38400

    Monthly rate = RATE (48,960,-38400) = 0.77015%

    APR = Monthly rate * 12

    APR = 0.77015%*12

    APR = 9.24% (Rounded to 2 decimals)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “You want to borrow $38,400 and can afford monthly payments of $960 for 48 months, but no more. assume monthly compounding. what is the ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers