Ask Question
26 April, 22:11

Tim Worker buys a new sofa for $549.95. He pays 20% down and takes an installment loan to complete the purchase. He makes 12 payments which include his principal and a $50.00 finance charge. What is the APR on his loan to the nearest tenth?

+5
Answers (1)
  1. 26 April, 22:41
    0
    Down payment: $549.95 *.20 = $109.99

    Amount financed $549.95 - $109.99 = $439.96

    Monthly Payment: $439.96 + 50 / 12 = $40.83

    Monthly Payment Totals = $489.96

    Finance Charge / amount financed x 100 = 11.36% APR
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Tim Worker buys a new sofa for $549.95. He pays 20% down and takes an installment loan to complete the purchase. He makes 12 payments which ...” in 📗 Mathematics 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