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You purchase a new motor scooter for $3,350. You put a 10% down payment and $108.08 per month on a 36 month purchase plan. Use the APR formula to determine the annual percentage rate to a tenth of a percent.
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You purchase a new motor scooter for $3,350. You put a 10% down payment and $108.08 per month on a 36 month purchase plan. Use the APR formula to determine the annual percentage rate to a tenth of a percent.

User Kiirani
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2 Answers

4 votes

Answer:

Explanation:

17.5

User Vitalii Vasylenko
by
7.9k points
1 vote
Hi there
Use the formula of the present value of annuity ordinary through Google
What you have here is a loan payment of $108.08 with a present value of $3015 (the $3350 minus the 10% down payment) and a future value of zero with monthly compounding over 36 months

I got
R=0.173906
R=17.4%

Good luck!
User Mwthreex
by
7.3k points
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