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anonymous

  • 5 years ago

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?

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  1. amistre64
    • 5 years ago
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    think that last ones a little off.....

  2. anonymous
    • 5 years ago
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    16 1/2% (that is, 16.5%) 17% 17 1/2% (that is, 17.5%) 18%

  3. anonymous
    • 5 years ago
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    thats all i can choose from

  4. anonymous
    • 5 years ago
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    aww u deleted it... i was looking at it lol

  5. amistre64
    • 5 years ago
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    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

  6. anonymous
    • 5 years ago
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    you know i tried to send the ? to KGB and they got it wrong

  7. amistre64
    • 5 years ago
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    that doesnt match an answer either does it... r = 9.33% with that...

  8. amistre64
    • 5 years ago
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    well, getting it wrong is sometimes better than getting it right lol

  9. anonymous
    • 5 years ago
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    see i got 5 questions for this exam and im barley passing so im trying to get all five right lol

  10. amistre64
    • 5 years ago
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    let me do a quick read on APR .... there is something that im forgetting, I just know it ;)

  11. anonymous
    • 5 years ago
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    andthis last question i cant get

  12. anonymous
    • 5 years ago
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    ok

  13. amistre64
    • 5 years ago
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    ........ 17.5 is what I can come up with; but how? i dunno

  14. amistre64
    • 5 years ago
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    http://www.debtconsolidationcare.com/calculator/apr.php

  15. anonymous
    • 5 years ago
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    hey... ima go with it

  16. amistre64
    • 5 years ago
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    when I put in 17.5; I get interest of 194......

  17. amistre64
    • 5 years ago
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    hope its right ;)

  18. anonymous
    • 5 years ago
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    ill let you now in a sec

  19. anonymous
    • 5 years ago
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    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%)

  20. anonymous
    • 5 years ago
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    good job!! thanks alot!!

  21. amistre64
    • 5 years ago
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    9.75 i had .... just couldnt figure what to do with it ;)

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