Subtract - 20 from - 25.
2 answers:
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Answer:
- finance charge: $40
- APR ≈ 35.07%
Step-by-step explanation:
The amount Buyer pays for the financing is ...
($20/mo)×(12 mo) = $240
Since she is financing $200, her finance charge is ...
$240 -200 = $40
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The interest this represents on a loan of $200 can be found using a financial calculator or spreadsheet. It is a little more than 2.92% per month. On an annual basis, it is 35.07%.
