anonymous
  • anonymous
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?
Mathematics
  • Stacey Warren - Expert brainly.com
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SOLVED
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jamiebookeater
  • jamiebookeater
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amistre64
  • amistre64
think that last ones a little off.....
anonymous
  • anonymous
16 1/2% (that is, 16.5%) 17% 17 1/2% (that is, 17.5%) 18%
anonymous
  • anonymous
thats all i can choose from

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anonymous
  • anonymous
aww u deleted it... i was looking at it lol
amistre64
  • amistre64
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
anonymous
  • anonymous
you know i tried to send the ? to KGB and they got it wrong
amistre64
  • amistre64
that doesnt match an answer either does it... r = 9.33% with that...
amistre64
  • amistre64
well, getting it wrong is sometimes better than getting it right lol
anonymous
  • anonymous
see i got 5 questions for this exam and im barley passing so im trying to get all five right lol
amistre64
  • amistre64
let me do a quick read on APR .... there is something that im forgetting, I just know it ;)
anonymous
  • anonymous
andthis last question i cant get
anonymous
  • anonymous
ok
amistre64
  • amistre64
........ 17.5 is what I can come up with; but how? i dunno
amistre64
  • amistre64
http://www.debtconsolidationcare.com/calculator/apr.php
anonymous
  • anonymous
hey... ima go with it
amistre64
  • amistre64
when I put in 17.5; I get interest of 194......
amistre64
  • amistre64
hope its right ;)
anonymous
  • anonymous
ill let you now in a sec
anonymous
  • anonymous
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%)
anonymous
  • anonymous
good job!! thanks alot!!
amistre64
  • amistre64
9.75 i had .... just couldnt figure what to do with it ;)

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