Find the APR, rounded to the nearest tenth of a percent (one decimal place) for the loan. Purchase a living room set for $4,900
1 answer:
9514 1404 393
Answer:
14.3%
Step-by-step explanation:
We assume this question is asking for the annual interest rate for an amortized loan that would produce the same total repayment amount as if 8% simple interest were added to the $4900 loan amount. There is no formula for that, but there are a number of apps and spreadsheets that can calculate it. In the attached, we have use a graphing calculator.
The APR is about 14.3%.
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The amount to be repaid is calculated using the simple interest formula:
A = P(1 +rt) = $4900(1 +0.08·4) = $6468
Then the required monthly payment (for 48 months) is ...
$6468/48 = $134.75
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The payment amount for a 48-payment loan at rate r on a principal of $4900 will be ...
A = 4900(r/12)/(1 -(1 +r/12)^-48)
In the attachment, we show the value of r (in percent) that would make the payment amount A be $134.75. We have done this by casting the problem in the form f(r) = 0 and looking for the x-intercept of f(r).
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<em>Additional comment</em>
The second attachment uses a spreadsheet for the same purpose. Here, we have used Go.ogle Sheets with a "Goal Seek" add-on to adjust the value in cell B5 so that the computed payment on the loan (cell B6) is the same as the value we calculated in cell B4.
We found the graphing calculator solution to be much quicker, though in that case we actually had to know the formula to use to calculate the payment. The payment formula is built into the spreadsheet.
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Answer: $85
Explanation:
Explanation:
There was a 66 
% increase from Sari's sales from November to December.
To find the percentage increase in her sales, we must first find the amount her sales increased. We can do that by subtracting the greeting cards sold in November from the number of greeting cards sold in December. Substituting values and simplifying, we get that she sold 200 more greeting cards in December.
To find what percent increase this is, we must find what percent 200 is of the number of greeting cards sold in November. We can do this by dividing 200 by the number of cards sold in November (300), and then multiplying by 100 (to make it a percent). Doing this, we get * 100 which gives us our answer of 66 %.
To find the percentage increase in her sales, we must first find the amount her sales increased. We can do that by subtracting the greeting cards sold in November from the number of greeting cards sold in December. Substituting values and simplifying, we get that she sold 200 more greeting cards in December.
To find what percent increase this is, we must find what percent 200 is of the number of greeting cards sold in November. We can do this by dividing 200 by the number of cards sold in November (300), and then multiplying by 100 (to make it a percent). Doing this, we get