Question

You are borrowing $4,285 to purchase a computer using a 36 month installment plan. Determine the annual percentage rate (APR) and the monthly payment given that the interest charge is $513.26. Round your answer to the nearest whole percent and to the nearest cent.

Answer 1

The price of the computer is 4 285 dollars which you borrowed for an installment plan.
Let's solve for the APR and the monthly payment.
The interest charge is 513.26 dollars for 36 months
=> 36 months = 3 years
=> 513.26 / 3 years = 171.1 dollars per year is the interest.

=> 4 285 + 513.26 = 4 798.26 dollars
=> 4 798.26 dollars /3 years = 1599.42 dollars per year
=>599.42 dollars / 12 months 133.29 dollars per month