Question

John Simone is buying a used car for a total cost of $11,805.00. He’s making a down payment of $1,500.00 and borrowing the remainder. If he makes monthly payments of $343.00 for three years, what APR has he paid?

Answer 1

1,500+343(3×12)=13,848
1,500+343(36)=13,848
1500+12,348= 13,848

Answer 2

Explanation:

Given that John Simone is purchasing a used car for 11805 dollars.

Down payment = 1500

Net loan amount = 11805-1500 = 10305

Equal monthly instalments he paid = 343 dollars

Tenure =3 years

For 3 years rate of interest should be 12.2%

Then only we get for 3 years for the loan emi as 343