1. Rishi ram obtained an installment loan for $3,000.00. He agreed to repay the loan in 6 monthly payments. His monthly payments is $516.50. What is the APR?
2. Tim Newman took out a simple interest loan of $1500 at a 10 percent interest for 12 months. After 4 payments, the balance is $1100. He pays off the loan when the next payment is due. What is the interest?
3. Lincoln cook has a check for $667.50 and a check for $126.50. he also has $482 in cash. He would like to receive $25 in cash and deposit the rest of the money into his bank account. What is the total deposit?
MY ANSWER= $1250.75
1. I = P - Po = 516.50*6 - 3000 = $99.
I = 99/0.5yr = $198/yr.
APR = (198/3000) * 100 = 6.6%
posted by Henry