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Sagot :
Answer:
Amount to be paid = $5098.32
Interest = $1,098.32
Interest rate = $366.11 per year
APR = 9.15%
Explanation:
We were given the following information:
Principal = $4,000
The total amount paid is given by:
[tex]\begin{gathered} =141.62\times36 \\ =5,098.32 \\ =\text{ \$5,098.32} \end{gathered}[/tex]The interest paid is given by:
[tex]\begin{gathered} =5,098.32-4,000 \\ =1,098.32 \\ =\text{ \$1,098.32} \end{gathered}[/tex]The annual interest is given by:
[tex]\begin{gathered} =\frac{interest\text{ paid}}{Duration} \\ Duration=36months=3years \\ =\frac{1,098.32}{3} \\ =366.1067\approx366.11 \\ =366.11 \\ =\text{ \$366.11 /year} \end{gathered}[/tex]The APR is given by:
[tex]\begin{gathered} =\frac{annual\text{ interest}}{Principal}\times100\text{\%} \\ =\frac{366.11}{4,000}\times100\text{\%} \\ =9.15275\approx9.15 \\ =9.15\text{\%} \\ \\ \therefore9.15\text{\%} \end{gathered}[/tex]
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