Question

Tim Smith has a $90,000 loan. His monthly payment is given in the table above. He paid $1,500 in fees and $6,271.04 in total interest the first year of the loan. If the APR is finance charge (interest plus fees) for one year ÷ amount financed, what was the APR for that year? In %

Answer 1

well, they give you the interest, the fees and the amount financed ...

Answer 2

how do you find the answer

Answer 3

it already tells you how to do it ....

If the APR is finance charge (interest plus fees) for one year ÷ amount financed, what was the APR for that year?

Answer 4

k thanks

Answer 5

what is the amount financed the interest fees for one year is 6,271

Answer 6

$1,500 + $6,271.04 is interest plus fees

Answer 7

(interest + fees) / amount financed = (6271.04 + 1500) / 90,000 = ?
Then turn that answer into a percent

Answer 8

thank you @texaschic101 that makes more sense....

Answer 9

YW :)