Question

Find the APR. (Use the True Annual Interest Rate (APR) table.)

Amount Financed		Finance Charge		Number of Payments
$4500		$349.20		12

STEP 1:	Determine the finance charge per $100. 349.20 · 100 = $
STEP 2:	Use the table to find at what APR the number in STEP 1 occurs in row 12. %

Answer 1

We can calculate the APR as follows:

Amount Financed = $ 4,500

Payments are considered to be made monthly = 12

Payment Amount = ( Amount Financed + Finance Charges ) / Number of Payments

= ( 4,500 + 349.20 ) / 12

= $ 404.10

Using this we can calculate the APR of the loan using excel sheet as follows:

= RATE (nper,-pmt,pv,fv)

= RATE(12,-404.1,4500,0)

= 1.17% is the monthly rate as the payments are considered to made monthly

APR = 1.169% * 12

= 14.03%

As the Table is not provided with the question attached, so I have solved it using the RATE function in Excel sheet.

Hope I am able to solve your concern. If you are satisfied hit a thumbs up !!