Question

There is a $81,818 loan with annual interest due. There was $900 in closing fees and $6,300 in total interest the first year. If the APR is the finance charge (interest plus fees) for one year ÷ amount financed, what was the APR for that year?

Answer 1

Hi there:-)

((6,300+900)÷81,818)×100
=8.80%

Hope it helps:-)