SOLUTION: A company borrowed $1500. It must make monthly payments of $40.50 for 42 months to pay off the loan. Use the constant ratio formula for APR to find the annual percentage rate.

Question 149229: A company borrowed $1500. It must make monthly payments of $40.50 for 42 months to pay off the loan. Use the constant ratio formula for APR to find the annual percentage rate.
YIkes! Please help
Ellen
Answer by mangopeeler07(462) (Show Source): You can put this solution on YOUR website!
loan=1500
Payment for year=12(payment for month)
{Payment for year/loan=annual percentage rate}

payment for year=12(40.5)
payment for year=486

486/loan=annual percentage rate
486/1500=annual percentage rate
.324=annual percentage rate

32.4% APR
RELATED QUESTIONS
Susan borrowed $5000. The terms of the loan were equal monthly payments at Susan 12%... (answered by Aldorozos,MathTherapy)

Ron borrowed $1800 to finance a computer at 15.6%/a compounded monthly for 1 1/2 years.... (answered by math_tutor2020,mananth)

Student loans are a hot discussion topic today both in the news and at home. Those of us... (answered by solver91311)

How much longer will it take monthly payments of $1,000 to pay off a $100,000 loan if the (answered by stanbon)

1) A young couple take out a 30-year home mortgage of $146,000.00 at 7.6% compounded... (answered by Theo)

Maria wants to buy a car but has little money. The dealer offers $5,000 at 12% compounded (answered by Theo)

1) Suppose you are have purchased a house and need a loan for $255,000. You decide to do... (answered by Theo)

Jill Roger borrowed $16,000 to buy a new boat. Assuming an interest charge of $2,900... (answered by mathstutor494)

Joe secured a loan of $12,000 3 years ago for use towards his college expenses. The bank (answered by addingup,MathTherapy)