Answered

Welcome to Westonci.ca, the place where your questions find answers from a community of knowledgeable experts. Connect with a community of experts ready to provide precise solutions to your questions on our user-friendly Q&A platform. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

Use the constant ratio formula to find the approximate annual percentage rate to the nearest tenth of a percent for a $2000 loan repaid in 12 payments with an interest charge of $180

Sagot :

sqdancefan

Answer:

  16.6%

Step-by-step explanation:

The constant ratio formula tells you the amount of total interest is ...

  I = Br(n+1)/(2m)

where B is the loan amount, r is the approximate APR, n is the number of payments, m is the number of payments per year.

Filling in the given values and solving for r, we get ...

  180 = 2000r(12 +1)/(2·12)

  180 = 26000r/24

  r = 180·24/26000 ≈ 0.16615 ≈ 16.6%

The approximate annual percentage rate is 16.6%.

We appreciate your time. Please come back anytime for the latest information and answers to your questions. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.