Answer:
Her proximate APR is 5.1%
Step-by-step explanation:
The formula of the APR is ×
× 100%, where
- FC is the finance charge
- A is the amount financed
- m is the number of months
∵ Whitney bought a watch for $107.5
∴ A = 107.5
∵ The finance charge was $11
∴ FC = 11
∵ She paid for it over 6 months
∴ m = 6
- Substitute these values in the formula above
∵ ×
× 100%
∴ APR = 5.11627907%
- Round it to the nearest tenth
∴ APR = 5.1%
Her proximate APR is 5.1%