The Jones family bought a refrigerator for $900. They paid installments over 4 years at an add-on rate of 6%. What is the approx

Question

2 years ago

15

imate APR? ASAP

1 answer:

Savatey [412] · Answer 1 · 2023-03-26T12:57:39+03:00

The approximate APR for the purchase is 16%

<h3>
Calculations and Parameters</h3>

To calculate the annual percentage rate (APR)

We would calculate the interest rate

Add the administrative fees to the interest amount

Divide the loan amount (principal)

Divide by the total number of days in the loan term

Multiply all year

Multiply by 100 to convert to a percentage

Interest= P * R * t

APR= $\frac{\frac{216}{900}}{6 * 4 * 100}$

APR = 16%