3. Calculate the estimated APR given the following: Sale price:$4,975 Down payme

Question

3. Calculate the estimated APR given the following: Sale price:$4,975 Down payment: $620 Number of payments: 18 Monthly payment:$272 A) 13.50% - 13.75%
B) 15.00% - 15.25%
C) 16.00% - 16.25%
D) 14.50% - 14.75%

3. Calculate the estimated APR given the following: Sale price:$4,975 Down payment: $620 Number of payments: 18 Monthly payment:$272 A) 13.50% - 13.75%
B) 15.00% - 15.25%
C) 16.00% - 16.25%
D) 14.50% - 14.75%
3. Calculate the estimated APR given the following: Sale price:$4,975 Down payment: $620 Number of payments: 18 Monthly payment:$272 A) 13.50% - 13.75%
B) 15.00% - 15.25%
C) 16.00% - 16.25%
D) 14.50% - 14.75%
Calculate the estimated APR given the following: Sale price:$4,975 Down payment: $620 Number of payments: 18 Monthly payment:$272 Calculate the estimated APR given the following: Sale price:$4,975 Down payment: $620 Number of payments: 18 Monthly payment:$272

Explanation / Answer

Sale Price $4,975 Less: Down Payment $620 Balance Amount $4,355 Calculating Annual PercentageRate(APR): Calculating Monthly Interest rate(Rate): (Using MS-Excel "RATE"Function): Number of Periods (Nper) 18 Monthly Payment (PMT) -$272 Present Value of Selling Price (PV) -$4,355 Monthly Interest rate (Rate) 0.012627728 Monthly Interest rate 1.26% Annual Percentage Rate (APR) (1.26 *12) 15.12% Thus, Answer is Option (B)15.00% -   15.25% Hope this helps Sale Price $4,975 Less: Down Payment $620 Balance Amount $4,355 Calculating Annual PercentageRate(APR): Calculating Monthly Interest rate(Rate): (Using MS-Excel "RATE"Function): Number of Periods (Nper) 18 Monthly Payment (PMT) -$272 Present Value of Selling Price (PV) -$4,355 Monthly Interest rate (Rate) 0.012627728 Monthly Interest rate 1.26% Annual Percentage Rate (APR) (1.26 *12) 15.12% Thus, Answer is Option (B)15.00% -   15.25%

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