Ted purchased a speedboat costing $15,800 by taking out an installment loan. He made a down payment of $4,000 and financed the balance for 36 months. If the payments are $383.53 each month, find the APR using Table 13-1.

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The financed amount is $11,800 ($15,800 - $4,000). The total payment over 36 months is $13,806.08 ($383.53 x 36). The finance charge is $2,006.08 ($13,806.08 - $11,800). Using Table 13-1, the APR for a 36-month loan with a finance charge of $2,006.08 on $11,800 is approximately 10.50%.

Ted Purchased a Speedboat Costing $15,800 by Taking Out an Installment