The owner of a automobile repair center purchased new electronic diagnostic equipment for $12000. He paid 10 precent down and then paid 60 precent monthly of $203.81. Determine the APR of the loan to the nearest one half of a precent

Question

taneshae07 taneshae07

02-02-2018
Mathematics

contestada

The owner of a automobile repair center purchased new electronic diagnostic equipment for $12000. He paid 10 precent down and then paid 60 precent monthly of $203.81. Determine the APR of the loan to the nearest one half of a precent

Respuesta :

Otras preguntas

how can become smart

which of the following most accurately describes the extent of Alexander the Great's Empire

Which of the following terms correctly describe the object below. Check all that apply a. pyramid b. polygon c. square d. solid e. polyhedron f. prism

Screaming is a? A noun b verb c adjective d adverb

Which of the sets of ordered pairs represents a function? A = {(−4, 5), (1, −1), (2, −2), (2, 3)} B = {(2, 2), (3, −2), (9, 3), (9, −3)} A Only A B Only B C B

Which geometric instrument would I use to measure the length of a segment, the compass or the straightedge? Explain your answer.

what is the goal in nutrition? a. positive energy balance b. weight maintenance c. energy balance d. weight loss

brown thank you it's a cold night I see you are still at your books my lad (pats Abraham on the shoulder) well I brought you another a friend which of neighbe

"Given: In ∆ABC, segment DE is parallel to segment AC .. Prove: BD over BA equals BE over BC. The two-column proof with missing statements and reasons proves th

" Pentagon ABCDE and pentagon A’B’C’D’E’ are shown on the coordinate plane below. Which two transformations are applied to pentagon ABCDE to create A’B’C’D’E’?

mathmate mathmate · Answer 1 · 2018-02-02T20:28:51+01:00

The owner of a automobile repair center purchased new electronic diagnostic equipment for $12000. He paid 10 pERcent down and then paid 60 pAYMENTS monthly of $203.81.

Net loan, P=12000*0.9=10800
Monthly payment, A=203.81
Number of payments, n=60

Let i=APR

A=P(i/12*(1+i/12)^n)/((1+i/12)^n-1)
Substituting values
203.81=10800(i/12*(1+i/12)^60)/((1+i/12)^n-1)

=>
12*203.81/10800=i(1+i/12)^60/((1+i/12)^60-1)

To solve for i, we form the iterative equation:
(1+i/12)^60=(12*203.81/10800)/i*((1+i/12)^60-1)
i=12*(12*203.81/10800*((1+i/12)^60-1)/i)^(1/60-1)
try i=0.05,
f(0.05)=0.05
Therefore the APR is 5%