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Question
Umeki Akita repaid a loan of $3,200 in 15 monthly inst allments of$232.80 each. Use the annual percentage rate table in Chapter 4 to find the APR on his loan.
Solution
VerifiedStep 1
1 of 2First find total interest:
= $232.80$\times\div\div$32\ = $9.125 finance charge per $100 of amount financed\
Use the Annual Percent age Rate Tables on page 162. Read across the rows for 15 payments until you come to the amount closest to $9.125. Since $9.06 is the closest amount, the rate is 13$$%.
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