Question

You are borrowing $4,285 to purchase a computer using a 36 month installment plan. Determine the annual percentage rate (APR) and the monthly payment given that the interest charge is $513.26. Round your answer to the nearest whole percent and to the nearest cent.

Answer 1

The price of the computer is 4 285 dollars which you borrowed for an installment plan.
The amount you borrowed is 4 285 dollars.
Interests = 513.26 dollars for 36 months
=> 36 months / 12  = 3 years
=> 4 285 + 513.26 = 4 798.26 dollars 
=>  4 798.26 dollars  / 3 years = 1599.42 dollars per year
=>599.42 dollars / 12 months 133.29 dollars per month