Find the APR:
Amount Financed $3500; Interest Charged $ 675; Number of Payments 24
r = ((I / Po) / 2) * 100%,
r = ((675 / 3500) / 2) * 100% = 9.643% = APR.
Note:24 mo. = 2years.
56
To find the Annual Percentage Rate (APR), we need to follow these steps:
Step 1: Calculate the total interest paid over the life of the loan by multiplying the interest charged by the number of payments. In this case, the total interest paid would be $675 * 24 = $16,200.
Step 2: Calculate the total loan amount, which is the sum of the amount financed and the total interest paid. In this case, the total loan amount would be $3,500 + $16,200 = $19,700.
Step 3: Calculate the monthly interest rate by dividing the total interest paid by the total loan amount and then dividing it by the number of payments. In this case, the monthly interest rate would be $16,200 / $19,700 / 24 = 0.034 %.
Step 4: Finally, multiply the monthly interest rate by 12 to get the Annual Percentage Rate (APR). In this case, the APR would be 0.034 * 12 = 4.08 %.
Therefore, the APR for this loan is 4.08 %.