9514 1404 393
Answer:
- $1260 finance charge
- APR ≈ 12.83%
Step-by-step explanation:
The interest due is the finance charge:
I = Prt = $6000·0.07·3 = $1260
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The monthly payment is ...
($6000 +1260)/36 = $201.67
The APR for a 3-year loan of $6000 with a monthly payment of $201.67 is found by a financial calculator to be about 12.83%.
