Question

A house costs $138,000. It is to be paid off in exactly ten years, with monthly payments of $1675. What is the APR of this loan?

Answer 1

45.65%

Step-by-step explanation:

Cost of House = $138,000

Total Annual Payments Cost = $138,000/12

= $ 13,800

Total Payments made = $1,675*12*10

= $ 20,100*10

= $ 200,100

APR = (20,100-13,800)/13,800

= 45.65%