Question

Wally bought a television for $987.00. The finance charge was $205 and she paid for it over 24 months. (Finance Ch arg e: #Months)(12) Amount Financed Use the formula Approximate APR to calculate her approximate APR. Round the answer to the nearest tenth.​

Answer 1

• 10.4%

Explanation:

• Principal is $987.
• Finance charge is $205
• Time is 2 years

• APR = ((Finance charge/Principal)/Time)*100% (simplified for this case)
• APR = ((205/987)/2)*100% = 10.4%