Answer:
16.6%
Step-by-step explanation:
The constant ratio formula tells you the amount of total interest is ...
I = Br(n+1)/(2m)
where B is the loan amount, r is the approximate APR, n is the number of payments, m is the number of payments per year.
Filling in the given values and solving for r, we get ...
180 = 2000r(12 +1)/(2·12)
180 = 26000r/24
r = 180·24/26000 ≈ 0.16615 ≈ 16.6%
The approximate annual percentage rate is 16.6%.
