You are borrowing $4,285 to purchase a computer using a 36 month installment plan. Determine the annual percentage rate (APR) and the monthly payment given that the interest charge is $513.26. Round your answer to the nearest whole percent and to the nearest cent.
a.
8%; $134.27
c.
7%; $133.29
b.
8%; $150.36
d.
7%; $148.16

Question

You are borrowing $4,285 to purchase a computer using a 36 month installment plan. Determine the annual percentage rate (APR) and the monthly payment given that the interest charge is $513.26. Round your answer to the nearest whole percent and to the nearest cent.
a.
8%; $134.27
c.
7%; $133.29
b.
8%; $150.36
d.
7%; $148.16

amistre64 · Answer

well, we know what total cost is  does that help us any?

amistre64 · Answer

total number of payments is equal to loan + interest  right?

anonymous · Answer

i have no idea

amistre64 · Answer

you have to have some idea ... you are taking a class right?

anonymous · Answer

no i'm taking statistics

amistre64 · Answer

they should have at least explained that when you make payments on a loan, that the total number of payments is how much it costs you for the loan.  

and that interest is charged so that the lender makes money.

so when the loan and interest are paid off, then no more payments are needed.

amistre64 · Answer

lol, but this is a financial question, not a stats question .... whats the probability that that would have occured?

amistre64 · Answer

now,  we have 36 payments that equal out to the loan + interest.

how much is one payment?

anonymous · Answer

exactly why i don't understand this. this isn't a stats question.

amistre64 · Answer

what is loan + interest?  the question apparently still needs an answer.