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13 June, 18:38

Brad Henderson takes out a mortgage for $300,000. This is a 30-year loan at $1,000 per month. This is a total interest of $60,000. What is the APR using the formula (to the nearest tenth) ?

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  1. 13 June, 18:46
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    APR = (2yc) : (m * (n+1))

    APR = (2*12*60,000) : (300,000 * (360+1))

    APR=0.0133*100=1.33%
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