Find the annual percentage rate using the annual percentage rate table.
-Amount Financed: $900
Finance Charge: $142.92
Number of monthly payments: 30

Question

Find the annual percentage rate using the annual percentage rate table.  
-Amount Financed: $900
Finance Charge: $142.92
Number of monthly payments: 30

Quizplus · Accepted Answer

1. Find the finance charge as a percentage of the amount financed: 
142.92/900 = 0.1588 (rounded to four decimal places)
2. Locate the row that corresponds to the number of monthly payments (30) in the APR table
3. Find the column that includes the calculated finance charge percentage (0.1588)
4. The APR in that cell is 11.75%
Therefore, the answer is choice letter C. Using the table, we find that for a finance charge of $142.92 and a 30-month loan term, the corresponding APR is 11.75%. This is the closest match to the available choices.

Find the Annual Percentage Rate Using the Annual Percentage Rate