The local Rent-to-Own Store offers you the following plan to purchase a washing machine. The washing machine retails for $850, but you will have three years to pay it off using a simple interest loan. If you pay back $1400, then what was the APR on this loan? Give your answer as a percentage rounded to the nearest tenth of a percent.

Question

Quizplus · Accepted Answer

The Answer of The local Rent-to-Own Store offers you the following plan to purchase a washing machine. The washing machine retails for $850, but you will have three years to pay it off using a simple interest loan. If you pay back $1400, then what was the APR on this loan? Give your answer as a percentage rounded to the nearest tenth of a percent.

The Local Rent-To-Own Store Offers You the Following Plan to Purchase