# Math

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Tim Worker buys a new sofa for \$549.95. He pays 20% down and takes an installment loan to complete the purchase. He makes 12 payments which include his principal and a \$50.00 finance charge. What is the APR on his loan?

The down payment is \$

The amount financed is \$

The monthly payment will be \$

At the end of one year the monthly payments will total \$

The finance charge for one year ÷ amount financed is %

• Math -

Which of these questions don't you understand?

• Math -

It's all one whole question!
Can you just tell me the steps to solve each one you do not have to tell me the answer! I just need to know how to get the answer so I will know how to do this problem again ..

• Math -

What is the APR on his loan?
Divide the price by his total payments. Multiply that by 100.

The down payment is \$
Multiply the price by 0.2

The amount financed is \$
Subtract the down payment from the price.

The monthly payment will be \$
Add \$50 to the amount financed. Divide by 12

At the end of one year the monthly payments will total \$
Multiply the total payments by 12.

• Math -

Is the price 549.95?

• Math -

Yes.

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