Question

Brad Henderson takes out a mortgage for $300,000. This is a 30-year loan at $1,000 per month. This is a total interest of $60,000. What is the APR using the formula (to the nearest tenth)?

Answer 1

APR=(2yc)÷(m×(n+1))

APR=(2×12×60,000)÷(300,000×(360+1))

APR=0.0133×100= 1.33%

Explanation:

What he said. Answer highlighted.

Answer 2

APR=(2yc)÷(m×(n+1))
APR=(2×12×60,000)÷(300,000×(360+1))
APR=0.0133×100=1.33%