Tim Worker buys a satellite dish for $329.99. He pays 10% down and takes an installment loan to complete the purchase. He makes 12 payments which include his principal and a $40.00 finance charge. What is the APR on his loan? Tim will pay ($329.99 x 10%) or $ (to the nearest whole number) for his down payment. He will finance ($329.99 - down payment) or $. Tim will repay finance amount : 12 plus $40.00 : 12 or monthly payment of $. At the end of one year Tim will have paid monthly payments totaling $. The APR = finance charge for one year : amount financed = % (to the nearest tenth).

Question

Mathematics

Jack Jefferson

1 October, 02:11

Tim Worker buys a satellite dish for $329.99. He pays 10% down and takes an installment loan to complete the purchase. He makes 12 payments which include his principal and a $40.00 finance charge. What is the APR on his loan? Tim will pay ($329.99 x 10%) or $ (to the nearest whole number) for his down payment. He will finance ($329.99 - down payment) or $. Tim will repay finance amount : 12 plus $40.00 : 12 or monthly payment of $. At the end of one year Tim will have paid monthly payments totaling $. The APR = finance charge for one year : amount financed = % (to the nearest tenth).

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Penelope · Answer 1

Down payment

329.99*0.1=33

amount financed

329.99-33

=296.99

monthly payment

(296.99:12) + (40:12)

=28.08

Total monthly payments

28.08*12

=336.96

APR

((336.96-296.99) : 296.99) * 100

=13.46%