You purchase a new motor scooter for $3,350. You put a 10% down payment and $108.08 per month on a 36 month purchase plan. Use t

Question

Serhud [2]

1 year ago

14

You purchase a new motor scooter for $3,350. You put a 10% down payment and $108.08 per month on a 36 month purchase plan. Use t

he APR formula to determine the annual percentage rate to a tenth of a percent. a. 17.3% c. 16.6% b. 17.5% d. 16.7%

Mathematics

1 answer:

nevsk [136] · Answer 1 · 2023-08-31T16:10:48+03:00

Use the formula of the present value of annuity ordinary through GoogleWhat you have here is a loan payment of $108.08 with a present value of $3015 (the $3350 minus the 10% down payment) and a future value of zero with monthly compounding over 36 months
I got
R=0.173906
R=17.3%
good luck