Use an annual percentage rate table to solve the problem.
-A homeowner installed a new swimming pool for $7000. He paid 10% down and then paid 36 Monthly payments of $197.42. Determine the APR of the loan to the nearest one-half of a percent.
A) 8.0%
B) 8.5%
C) 9.0%
D) 10.0%

Question

Quizplus · Accepted Answer

The correct answer is A.The total amount of the loan is $7000 - $700 = $6300. The total amount of interest paid is $36 * $197.42 - $6300 = $2749.52. The APR is $2749.52 / $6300 * 12 * 100 = 8.0%.

Use an Annual Percentage Rate Table to Solve the Problem