Answer:
Explanation:
Total Installment Price:
The total installment price is the sum of all monthly payments made over the duration of the loan.
Total Installment Price = Monthly Payment * Number of Months
Total Installment Price = $558.16 * 48
Total Installment Price = $26,766.88
Finance Charge:
The finance charge is the total amount paid for borrowing the money, excluding the principal amount.
Finance Charge = Total Installment Price - Loan Amount
Finance Charge = $26,766.88 - $24,000
Finance Charge = $2,766.88
Finance Charge per $100 financed:
To calculate the finance charge per $100 financed, we divide the finance charge by the loan amount and then multiply it by 100.
Finance Charge per $100 financed = (Finance Charge / Loan Amount) * 100
Finance Charge per $100 financed = ($2,766.88 / $24,000) * 100
Finance Charge per $100 financed = 11.53
APR (Annual Percentage Rate):
The APR represents the annualized cost of borrowing, including both the interest rate and any other fees or charges.
To calculate the APR, we need to use the formula for APR and solve for the interest rate (r).
APR = (2 * (r/12) * (Total Installment Price - Loan Amount)) / (Loan Amount + Total Installment Price)
Let's solve for r:
APR = (2 * (r/12) * ($26,766.88 - $24,000)) / ($24,000 + $26,766.88)
APR = (2 * (r/12) * $2,766.88) / $50,766.88
Simplifying the equation further:
APR = (r * $2,766.88) / $50,766.88
We can solve for r by multiplying both sides by ($50,766.88 / $2,766.88):
APR * ($50,766.88 / $2,766.88) = r
APR * 18.36 = r
Hence, the APR is equal to the interest rate (r) multiplied by 18.36.
Please provide the APR rate to calculate the value of r.