A house costs $138 000. It is to be paid off in exactly 10 years, with monthly payments of $1 675. What is the APR of this loan?

Name: A house costs $138 000. It is to be paid off in exactly 10 years, with monthly payments of $1 675. What is the APR of this loan?
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Question

Quizplus · Accepted Answer

The APR can be calculated using the formula for the monthly payment of an amortizing loan. By substituting the given values into the formula and solving for the interest rate, the APR is found to be approximately 8.00%.

A House Costs $138 000