Math
posted by Israel on .
please help me thanks :)
Paul needs to repay a loan(installment loan) of $3,500 with 20 equal monthly payments of $196 each. What is the APR of the laon?
I got 11.16% then I got 12 % so I don't know

Paul needs to repay a loan(installment loan) of $3,500 with 20 equal monthly payments of $196 each. What is the APR of the laon?
I got 11.16% then I got 12 % so I don't know
From R = Pi/[1  (1+i)^n]
Using an APR of 13.25% compounded monthly:
R = 3500(.011041666)/[1(1.011041666)^20] = $196.00.