Problema Solution
Barry bought a new television set for $475. He paid nothing down but agreed to payments of $41.31 per month for 12 months. Find the finance charge and the annual percentage rate for the loan.
Answer provided by our tutors
the finance charge = 41.31*12 - 475
the finance charge = $20.72
the annual percentage rate = (20.72/475)*100
the annual percentage rate = 4.36%