Given: $140.10 per month; cash price $5,600; down payment $0; 60 payments Cash or trade months with bank-approved credit; amount financed $5,600
Finance charge $2,806
Total payments $8,406
The APR is:

Question

Quizplus · Accepted Answer

The APR (Annual Percentage Rate) can be calculated using the formula for the finance charge and the total amount financed. Given the finance charge of $2,806 and the amount financed of $5,600 over 60 months, the APR is approximately 17.30%.