You take out a consumer loan at your credit union for new insulated windows for your house. The total installed cost is $8,250, of which you pay 20% down. The balance is to be paid in 71 equal monthly payments, with a finance charge equal to 7.5% simple interest on the outstanding balance. Find the approximate annual percentage rate (APR), to the nearest tenth of a percent.

You take out a consumer loan at your credit union for new insulated windows for your house. The total installed cost is $8,250, of which you pay 20% down. The balance is to be paid in 71 equal monthly payments, with a finance charge equal to 7.5% simple interest on the outstanding balance. Find the approximate annual percentage rate (APR), to the nearest tenth of a percent.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 15P

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