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Jen Anderson takes out a mortgage for $120,000. This is a loan of 30 years at $500 per month. This gives a total interest cost of $60,000. What is the APR using the formula?

Jen Anderson takes out a mortgage for $120,000. This is a loan of 30 years at $500 per month. This gives a total interest cost of $60,000. What is the APR using the formula?
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1 vote
Jen Anderson takes out a mortgage for $120,000. This is a loan of 30 years at $500 per month. This gives a total interest cost of $60,000. What is the APR using the formula?

asked
User Sreenath S
by
8.0k points

2 Answers

7 votes

Answer:

3.32%

Explanation:

answered
User Fargonaut
by
8.5k points
2 votes
APR=(2yc)÷(m×(n+1))
APR=(2×12×60,000)÷(120,000×(360+1))
=0.0332×100=3.32%
answered
User Denis Mazourick
by
7.7k points
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