Question

Find the annual percentage rate, using the annual percentage rate table.

Answer 1

Hi there:)

Step 1
Financecharge=1,030.62×100
=103,062
Amount financed=8900
Step 2
Finance charge÷amount financed
103,062÷8,900=11.58
Step 3
look on pymt line for 24 months & amount closets to 11.58
But according to the table 11.58 located in the middle of 11.30 and 11.86
11.58−11.30=0.28
11.86−11.58=0.28
I would say the APR is either 10.5% or 11.0%

Hope it helps