Monday

September 22, 2014

September 22, 2014

Posted by **alisha s.** on Thursday, September 23, 2010 at 8:15pm.

$196 each. What is the annual percentage rate of the loan?

- math -
**Scott**, Thursday, December 9, 2010 at 8:56amUsing the formula of Interest equals principle times interest rate times term or

I + P x R x T.

Since we do not know the interest rate, using algebra, we get this formula to find out the interest rate:

R + I/ P x T.

So in your case it would be this:

R = $420.00 / $3,500.00 x 1.333

The $420.00 was derived from subtracting the total owed from the total payments. The term is 20 months or 1 8/12 years or 1 2/3 or 1.333

Now do the math. $35000 x 1.33 = 4665.5

$420 / 4665.5 = .09 or 9%

Proof:

I = 3500.x .09 x 1.333

I = $419.90 or rounded $420.

Hope this helped

**Answer this Question**

**Related Questions**

Business Math - Cassandra is repaying an installment loan of $3,500 with 20 ...

math - Cassandra is repaying an installment loan of 3,500 with 20 equal payments...

Business Finance - Cassandra is repaying an installment loan of $3500 with 20 ...

Math - Please check my answer thanks :) When repaing an installment loan of $3,...

Math - please help me thanks :) Paul needs to repay a loan(installment loan) of...

SOMEBODY HELP ME WITH MATH!!!!!! - A person wishes to borrow $20,000 and has the...

business math - financing furniture that costs $4200.00 with a two year ...

Finance - you have contacted a number of dearlerships to determine the best ...

Finance - you have contacted a number of dearlerships to determine the best ...

Finance - you have contacted a number of dearlerships to determine the best ...