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7 December, 20:20

Alan Cohl obtained an installment loan for $3,560. His finance charge is $308.56, and he will make 18 monthly payments. What is the APR?

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  1. 7 December, 20:37
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    Annual percentage rate = monthly rate * 12

    total interest = 308.56*18-3560 = 1994.08

    monthly interest = 1994.08/12 = 166.173

    monthly rate = 166.173/3560 = 4.7%

    APR = 4.7*12 = 56.01%
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