8.6 Homework: Determining the APR

10) Betty Arca

Installment loan: $800

Finance charge: $40.72

Requires 36 monthly payments

What is the APR?

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• 7.75%

• 5.59%

• 6%

• 3.25%

11) Webster Larkin

Installment loan: $3000

Requires 6 monthly payments of $511.18

What is the APR?

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• 7.75%

• 5.59%

• 6%

• 3.25%

12) Kenneth Bryant.

Installment loan: $9365

Requires 36 monthly payments of $284.90

What is the APR?

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• 7.75%

• 5.59%

• 6%

• 3.25%

13) Marie Brenson obtained an installment loan of $460 to purchase software. The finance charge is $7.41. She agreed to repay the loan in 6 monthly payments. What is the APR?

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• 7.75%

• 5.5%

• 6%

• 3.25%

14) Herb Stanly acquired an installment loan of $6,800. to pay his daughter's college tuition. The finance charge is $731. He agreed to repay the loan in 24 monthly payments. What is the APR?

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• 9.25%

• 10%

• 5.25%

• 6.25%

15) Jeff Stapleton acquired an installment loan of $1,995 to pay for a truck transmission repairs. He agreed to repay the loan in 12 monthly payments of $174.70 What is the APR?

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• 9.25%

• 10%

• 5.25%

• 6.25%

16) Julia Bourne obtained an installment loan of $3,800 to purchase a lawn and garden tractor. She agreed to repay the loan in 24 monthly payments of $167.15 What is the APR?

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• 9.25%

• 10%

• 5.25%

• 6.25%

17) Oneta Correy wants to obtain an installment loan of $9,900 to purchase a used truck. The bank has agreed to loan her the money for 24 months at $439.89. What is the APR?

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• 9.25%

• 10%

• 5.25%

• 6.25%

18) Helen Olson needs an installment loan of $999 to purchase a power washer from a paint store. She must repay the loan in 24 months. The monthly payment is $44.96. What is the APR?

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• 5.25%

• 6%

• 13.75%

• 7.5%

19) Brent and Lola Miller are buying a washer that costs #399.95 and a dryer that costs $249.99. To use the store's installment plan, they need a down payment of $49.94. They must make 18 monthly payments of $37.08 each. What is the APR?

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• 5.25%

• 6%

• 13.75%

• 7.5%