Find the APR (true annual interest rate), to the nearest half percent, for the following loan.
-Amount Financed = $3400 Finance Charge = $470
Number of Monthly Payments = 36

Question

Quizplus · Accepted Answer

The APR can be approximated by dividing the total finance charge by the loan amount, then dividing by the loan period in years, and finally multiplying by 100 to get a percentage. For this loan, the calculation is ($470 / $3400) / (36 / 12) * 100 = 8.5%.

Find the APR (True Annual Interest Rate), to the Nearest