What would be the APR on $1200.00 if the total interest paid was 75.00 for 36 months. The bank charge a service charge of 12.00 for the loan.

To calculate the APR (Annual Percentage Rate), we need to consider the total interest paid, the loan amount, the loan term, and any additional fees.

Given:
Loan amount (Principal): $1200.00
Total interest paid: $75.00
Loan term: 36 months
Service charge: $12.00

To calculate the APR, follow these steps:

Step 1: Calculate the total cost of the loan.
Total Cost = Principal + Total Interest Paid + Service Charge
Total Cost = $1200 + $75 + $12
Total Cost = $1287

Step 2: Calculate the monthly interest rate.
Monthly interest rate = Total Interest Paid / Loan term
Monthly interest rate = $75 / 36
Monthly interest rate ≈ $2.08

Step 3: Calculate the Annual interest rate.
Annual interest rate = Monthly interest rate * 12
Annual interest rate ≈ $2.08 * 12
Annual interest rate ≈ $24.96

Step 4: Calculate the APR.
APR = (Annual interest rate / Principal) * 100
APR = ($24.96 / $1200) * 100
APR ≈ 2.08%

Therefore, the APR on the loan of $1200.00 would be approximately 2.08%.