math
posted by Jessie .
Cassandra is repaying an installment loan of 3,500 with 20 equal payments of 196.00 each.What is the annual percentage rate of the loan?
A. 7.55%
B.11.16%
c 12%
d.13.25%

The question is not worded very clearly.
Are the payments made monthly?
Is this a simple interest or compound interest problem?
None of the rates given as choices verify when considering compound interest
so assuming this is simple interest,
interest = 20(196)  3500 = 420
rate = 420/((3500)(1))= .12 or 12% 
Thank you,I put the question down just like it is in my book,I was confused also.I did come up with 12%,so hopefully it is right.Thanks again!

I = PRT
R = I/PT
I = 20(196)  3500
I = 3920  3500
I = 420
T = 20 mo/12
T = 1.667 yr
R = I/PT
R = 420/(3500 * 1.667)
R = 420/5834.5
R = .071986
R = 7.2%
check
I = PRT
I = 3500 x 7.2% x 1.667 yr
I = 252 x 1.667
I = 420.084
I am not a tutor
Respond to this Question
Similar Questions

Math
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 % 
Math
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? 
math
Cassandra is repaying an installment loan of $3,500 with 20 equal monthly payments of $196 each. What is the annual percentage rate of the loan? 
business math
financing furniture that costs $4200.00 with a two year installment loan. The loan requires a 12% down payment and 24 equal monthly payments of $195.00. According to this information, what would be the finance charge on the loan? 
eco
Suppose a person pays $80 of annual interest on a loan that has a 5 percent annual interest rate. The loan amount is: A. $400. B. $1,600. C. $160. D. $85. 10. Suppose a loan customer is considering two alternative $22,000 loans. Loan … 
Business Math
Cassandra is repaying an installment loan of $3,500 with 20 equal monthly payments of $196 each. what is the annual percentage rate of the loan? 
SOMEBODY HELP ME WITH MATH!!!!!!
A person wishes to borrow $20,000 and has the following options. One lending source offers the loan for 24 monthly payments at an annual percentage rate of 14%. The second source offers the loan for 18 monthly payments at an annual … 
Business Finance
Cassandra is repaying an installment loan of $3500 with 20 equal monthly payments of $196 each. What is the annual percentage rate of the loan? 
Math
Stillwater hospital is borrowing $1,000,000 for its medical office building. The annual interest rate is 5 percent. What will be the equal annual payments on the loan if the length of the loan is four years and payments occurs at the … 
Math
Suppose you borrowed $25,000 for a car at an APR of 8%, which you are paying off with monthly payments of $510 for 5 years. a) Whatâ€™s the loan principal?