SOLUTION: Stephen purchased a diamond engagement ring for $3,000. His down payment was $1700, and he made 24 monthly payments of $59.99. Find the APR

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Stephen purchased a diamond engagement ring for $3,000. His down payment was $1700, and he made 24 monthly payments of $59.99. Find the APR      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 1035514: Stephen purchased a diamond engagement ring for $3,000. His down payment was $1700, and he made 24 monthly payments of $59.99. Find the APR
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
Stephen purchased a diamond engagement ring for $3,000. His down payment was $1700, and he made 24 monthly payments of $59.99. Find the APR
-------
3000-1700 1300
24*59.99 = 1439.76
-----
Interest paid over 2 years = 439.76
------
I = P*r*t
439.76 = 1439.76*r*2
---------
2r = 0.3054
Rate = 0.1527 = 15.27%
---------------
Cheers,
Stan H.
-----------