a. You took out a loan for $68,800, at 4.5% ordinary interest. The total amount of...

Question

Question

a. You took out a loan for $68,800, at 4.5% ordinary interest. The total amount of interest was $4,644?

What is the time period (in days) of the loan?

b.You repaid a $2,500 installment loan with 24 monthly payments of $123.00 each.

What was the annual percentage rate of the loan? answer b: 16.496% ???

business finance

Answer 1

Answer #1

a)

APR Paid:

= $4,644/$68,800

= 6.75%

Hence, time period is 540 days (360×(6.75%/4.5%))

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Answer 2

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