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Assume that interest is the only finance charge. Use financial calculator to answer the questions. How...

Assume that interest is the only finance charge. Use financial calculator to answer the questions. How much interest would be paid on a $10,000 installment loan to be repaid in 36 monthly installments of $332.14? Round the answer to 4 decimal places. What is the APR on this loan? Round the answer to 2 decimal places.

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Answer #1

Interest paid on the loan=332.14*36-10000=1957.04

APR on the loan

Using financial calculator

N=36

PMT=-332.14

PV=10000

FV=0

CPT I/Y=1%

Hence, APR=1%*12=12%

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