Ask Question
26 January, 00:24

You have arranged for a loan on your new car that will require the first payment today. The loan is for $24,500, and the monthly payments are $465. If the loan will be paid off over the next 60 months, what is the APR of the loan?

+2
Answers (1)
  1. 26 January, 00:40
    0
    84%

    Explanation:

    APR is the annual rate of interest that is paid on an investment, without taking into account the compounding of interest within that year. APR is calculated by multiplying the periodic interest rate by the number of periods in a year in which the periodic rate is applied.

    Divide the finance charge by the loan amount. In this case, $3,400 divided by $24,500 equals 0.138

    Multiply the result by 365 to get 50.4

    Divide the result by the term of the loan. In this case, 50.4 divided by 60 is 0.84

    Multiply the result by 100 to turn the answer into a percentage 84%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “You have arranged for a loan on your new car that will require the first payment today. The loan is for $24,500, and the monthly payments ...” 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