Find the approximate annual percentage rate using the approximate annual percentage rate formula. Round to the nearest tenth of a percent.
-Amount financed: $403
Finance charge: $50
Number of monthly payments: 18

Question

Quizplus · Accepted Answer

The approximate annual percentage rate (APR) can be calculated using the formula: APR ≈ (2 * finance charge * 12) / (amount financed * (number of payments + 1)). Plugging in the given values: APR ≈ (2 * 50 * 12) / (403 * (18 + 1)) = 1200 / 7647 ≈ 0.157 or 15.7%.

Find the Approximate Annual Percentage Rate Using the Approximate Annual