Answer:
APR would be 0.071.
Step-by-step explanation:
Given formula,
Here,
Paid fees for a year = $ 1,000,
Total interest for the year = $ 4,900,
⇒ Finance charge = $ 1,000 + $ 4,900 = $ 5,900,
Also, the financed amount of the loan = $ 83,098.59,
Hence, the APR charged for the year
Math error
The amount he needs to pay is $ 28753.61.
Given,
Principal (P) = $ 8000
Time (T) = 10 years
Rate of interest (R) = 13%
The payment will be quarterly so, n = 4
To find the amount of compound interest.
Formula
Amount =
Now,
Putting the values of P, T, n and R we get,
Amount = 8000(
= 28753.61 (approx)
D) 2.0 is right answer
I hope it's helps you