Calculate the Annual Percentage Rate for the Following Installment Loan

question 46

Short Answer

Calculate the annual percentage rate for the following installment loan using the APR formula, rounding dollars to the nearest cent and percents to the nearest hundredth. $$\begin{array} { l l l l l } \text { Amount } & \text { Number of } & \text { Monthly } & \text { Finance } & \\ \underline {\text { Financed }} & \underline { \text { Payments } } & \underline { \text { Payment } } & \underline { \text { Charge } } & \underline {\text { APR } }\\\$ 15,250 & 48 & \$ 484.25 & &\end{array}$$

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Definitions:

Probable

A term used to describe something that is likely to occur or is likely true.