Question

Aminah bought a radio which cost $150.40. She paid a finance charge of $18 and paid for nine months. What is her approximate APR?

Answer 1

\[APR = \frac{ finance~charge*12 }{ (number~of ~months)*(amount~financed) }\]
in this case, finance charge = $18, number of months = 9, amount financed = 150.40

plug these quantities in and evaluate APR. multiply by 100% to convert from a decimal to a percent.

formula reference: http://aventalearning.com/content168staging/2006ConsumerMathB/unit8/section3b.html