Question

A bicycle is purchased for $530 and financed for 12 months. If the total finance charge...

A bicycle is purchased for $530 and financed for 12 months. If the total finance charge is $36.46, find the annual percentage rate.

this is the options that i have

12.50%

12.00%

12.25%

12.75%

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Homework Answers

Answer #1

Annual Percentage Rate

APR = [Principal*Rate*Year/100 + Additional Charges)] / (Principal*Years) * 100

Original Loan Amount: $530.00

Interest: $0

Financing Fees: $36.46

Total Financing Charges: $36.46

Total Loan Principal: $566.46

APR: 12.4641% = 12.50%

Formula APR (%) = Principal x Rate x Years - + Additional Charges 100 - x 100 (Principal x Years) APR - Annual Percentage Rate Principal loan amount Rate - interest rate per year Years number of periods or years getcalc.com

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