a company borrowed $3100. it must make monthly payments of $178.37 for 18 months to pay off the loan. Ust the

constant ratio formula to find the
annual percentage rate...thanks for
helping me....kk

To find the annual percentage rate (APR) using the constant ratio formula, we need to consider the loan amount, the monthly payments, and the duration of the loan. The formula for calculating APR is:

APR = (Monthly Payment / Loan Amount) * (12 / Number of Months)

Let's calculate the APR step by step:

1. Loan Amount: The loan amount is given as $3100.
2. Monthly Payment: The monthly payment is given as $178.37.
3. Number of Months: The loan duration is 18 months.

Now we can plug these values into the formula:

APR = (178.37 / 3100) * (12 / 18)

Let's simplify the expression further:

APR = (0.0576) * (0.6667)

Now, multiply the numbers:

APR ≈ 0.03839

Lastly, convert the decimal to a percentage:

APR ≈ 3.839%

Therefore, the annual percentage rate (APR) for this loan is approximately 3.839%.