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Installment loan of $1,500, pay back in 18 months

Anna Asked: joseph alexander obtained an installment loan of $1,500. he agreed to repay the loan in 18 monthly payments.

The finance charge is $146.25. what is the APR?

Answers:

Scott B Answered:
9.75% 

Divide the finance charge (interest paid) by the amount financed to get your percentage.The actual calculation comes to .0975, but you have to multiply that by 100 (move decimal point 2 places to the right) to get the percentage.

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Posted by getloans - July 7, 2011 at 5:00 pm

Categories: Loan Questions   Tags: ,