Find the approximate annual percentage rate using the approximate annual percentage rate formula. Round to the nearest tenth of a percent.
-Amount financed: $127,534
Finance charge: $211,690
Number of monthly payments: 360

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 values: APR ≈ (2 * 211,690 * 12) / (127,534 * (360 + 1)) ≈ 0.110, which is approximately 11.0%.

Find the Approximate Annual Percentage Rate Using the Approximate Annual