Question 1171629: Find the annual percentage rate using the annual percentage rate table. Here are some conditions of the loan.
Amount Financed=$9600
Finance Charge=2003.52
No. of Monthly Payments=36
Answer by CPhill(1987)   (Show Source):
You can put this solution on YOUR website! To find the annual percentage rate (APR) using an APR table, we need to calculate the finance charge per $100 of the amount financed.
Here's how:
1. **Calculate the finance charge per $100:**
* (Finance Charge / Amount Financed) * $100
* ($2003.52 / $9600) * $100 = $20.87
2. **Use the APR Table:**
* You'll need an APR table that shows finance charges per $100 for various loan terms (number of monthly payments).
* Look for the row corresponding to 36 monthly payments.
* Then, find the column that's closest to the $20.87 finance charge per $100.
* The APR at the top of that column is the approximate APR for the loan.
**Without the actual APR table, I can provide a general idea:**
* APR tables usually show that higher finance charges per $100 result in higher APRs.
* For a loan with 36 monthly payments, a finance charge per $100 of $20.87 would typically correspond to an APR in the range of 12% to 14%, but this is an estimate.
**To get the exact APR:**
* You need to consult an actual APR table. These tables are often available online, in financial textbooks, or from lending institutions.
**Important Note:**
* Online APR calculators are also available and can provide a more precise calculation. You can input the amount financed, finance charge, and number of payments, and it will give you the APR.
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