Question

Using the examples above, answer the following questions. Bob Borrower purchased a television for $299.95. He paid 25% down and agreed to pay $21.59 for 12 months.

His 25% down payment was $.

So he will finance $.

At the end of one year, his monthly payments will total $.

To the nearest tenth, his APR will equal %.

Answer 1

Down payment 299.95*0.25=74.99
Finance 299.95-74.99=224.96
Monthly payments 21.59*12=259.08
APR
(259.08-224.96)/224.96)*100=15.2%

Answer 2

the question is not complete. see the complete question below.

Using the examples above, answer the following questions. Bob Borrower purchased a television for $299.95. He paid 25% down and agreed to pay $21.59 for 12 months. To the nearest tenth, his APR will equal %.

1. Down payment =$74.9875

2. He financed 299.95 - 74.9875 = $224.9625

3. At the end of one year, his monthly payments will total $259.08

4.The APR to the nearest tenth is 15.2%

Explanation:

If Bob borrower purchased the television for $299.95 and he paid a 25% down payment, is down payment will be equal to

$299.95*0.25 = $74.9875

Down payment =$74.9875

So he financed 299.95 - 74.9875 = $224.9625

If he agreed to pay $21.59 monthly, at the end of one year he would have paid 21.59*12 = 259.08

the APR = ((259.08 - 224.9625)/224.9625)*100 =15.1658

The APR to the nearest tenth is 15.2%