Please check my answer thanks :)
When repaing an installment loan of $3,500 with 20 equal monthly payments of $196 each , the apr of the loan is
my answer is 13.5 %
To check if your answer is correct, we need to calculate the Annual Percentage Rate (APR) of the loan.
The formula to calculate APR for an installment loan is:
APR = ((Monthly Payment / Loan Amount) * 12) * 100
In this case, the loan amount is $3,500 and the monthly payment is $196. Let's plug the values into the formula:
APR = (($196 / $3,500) * 12) * 100
Calculating this gives us:
APR = (0.056 * 12) * 100
APR = 0.672 * 100
APR = 67.2%
Therefore, the correct APR for the loan is 67.2%, not 13.5%. Your answer is incorrect.