Question

1.

Find the annual percentage rate, using the annual percentage rate table.
Amount Financed: $2,650

Finance Charge: $484.69

Number of Payments: 36

Answer 1

Amount Financed: $2,650
Finance Charge: $484.69
Number of Payments: 36

(Finance Charge)/(Amount Financed)*100$=($484.69)/($2,650)*100$
(Finance Charge)/(Amount Financed)*100$=(0.1829)*100$
(Finance Charge)/(Amount Financed)*100$=$18.29

In the row of number of Payments 36, we look for:
(Finance Charge)/(Amount Financed)*100$=$18.29, and we see to which annual porcentage rate it corresponds in the first row

Answer: 11.25%