Calculate the Annual Percentage Rate for the Following Installment Loan

question 1

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. $$\begin{array} { l l l l l } \text { Amount } & \text { Number of } & \text { Monthly } & \text { Finance } & \\ \underline {\text { Financed }} & \underline { \text { Payments }} & \underline { \text { Payment } } & \ \underline {\text { Charge } } & \underline { \text { APR } }\\\$ 6,200 & 24 & \$ 335.83 & &\end{array}$$

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Definitions:

Accounts Receivable

Amounts owed to a business by its customers for goods or services delivered but not yet paid for.

Perpetual Inventory System

An accounting method that records inventory transactions in real-time, providing a continuous account of inventory levels.