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Nicolas signed an installment agreement to borrow $1,000 for 3 years to be paid back monthly. The cost of the loan is $195.56. What is the APR

Respuesta :

Annual percentage rate or APR is a credit card's interest rate is the price you pay for borrowing money. For credit cards, the interest rates are typically stated as a yearly rate. This is called the annual percentage rate (APR).

Now, According to the Question,

We are Given :-

  • Amount Financed = $1,000
  • Time = 3 Years, paid back monthly
  • Cost of Loan = $195.56

CALCULATION

Finance Charge / Amount Financed =

$195.56 / $1,000 = 19.56

Table factor of 19.56 at 36 periods = 12% APR

Therefore the APR for the borrowed money is 12%

To know more about Annual percentage rate or APR, check the links.

https://brainly.com/question/2940185

https://brainly.com/question/2772156

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