Question

Natasha Gargarin paid $195 interest on a $2000 purchase. If she made 12 equal monthly payments to pay off the account, what was the APR for this purchase?

Answer 1

think that last ones a little off.....

Answer 2

16 1/2% (that is, 16.5%)

17%

17 1/2% (that is, 17.5%)

18%

Answer 3

thats all i can choose from

Answer 4

aww u deleted it... i was looking at it lol

Answer 5

1) simple interest should be:

195 = 2000*12*r
r = 195/(24000) r = .8125 %

2) compounded interest would be:

2195 = 2000(1+r/12)^12

2195/2000 = (1+r/12)^12

(2195/2000)^(1/12) = 1 + r/12

(2195/2000)^(1/12) - 1 = r/12

r = 12* [(2195/2000)^(1/12) - 1] maybe lol

Answer 6

you know i tried to send the ? to KGB and they got it wrong

Answer 7

that doesnt match an answer either does it... r = 9.33% with that...

Answer 8

well, getting it wrong is sometimes better than getting it right lol

Answer 9

see i got 5 questions for this exam and im barley passing so im trying to get all five right lol

Answer 10

let me do a quick read on APR .... there is something that im forgetting, I just know it ;)

Answer 11

andthis last question i cant get

Answer 12

ok

Answer 13

........ 17.5 is what I can come up with; but how? i dunno

Answer 14

http://www.debtconsolidationcare.com/calculator/apr.php

Answer 15

hey... ima go with it

Answer 16

when I put in 17.5; I get interest of 194......

Answer 17

hope its right ;)

Answer 18

ill let you now in a sec

Answer 19

We need to use Table 13.3 to determine the APR, and it is displayed based on the finance charge per $100. So we need to calculate how much finance charge Natasha paid per $100.
($195/$2000)*($100) = $9.75

Turning to Table 13.3, for the line with no. payments = 12, $9.75 is closest to the column for 17.5%. So the APR is approximately 17 1/2% (17.5%)

Answer 20

good job!! thanks alot!!

Answer 21

9.75 i had .... just couldnt figure what to do with it ;)