Donald Rivera purchased a leather living room set for $4750, paying $500 down. The balance was financed for 21 equal monthly payments, and Donald agreed to pay a $496 finance charge. Using the annual percentage rate (APR) table, calculate the following. (Round all answers to the nearest hundredth.) Amount financed: Annual percentage rate (APR): %

Question

Donald Rivera purchased a leather living room set for  $4750, paying  $500 down. The balance was financed for 21 equal monthly payments, and Donald agreed to pay a  $496 finance charge. Using the annual percentage rate (APR) table, calculate the following. (Round all answers to the nearest hundredth.)  Amount financed: Annual percentage rate (APR):  %

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Calculate Amount Financed: First, we need to calculate the amount financed by subtracting the down payment from the purchase price. Amount financed = Purchase price - Down payment = $4750 - $500Find Amount Financed: Now, let's perform the calculation to find the amount financed. Amount financed = $4750 - $500 = $4250Calculate Annual Percentage Rate (APR): Next, we need to calculate the annual percentage rate (APR). The APR can be found by using the formula: APR = (Finance charge / Amount financed) / (Number of payments / 12) * 100 However, we need to ensure that we have all the necessary values before we proceed with the calculation.Calculate APR: We have the finance charge ($496), the amount financed ($4250), and the number of payments (21). Now we can calculate the APR. APR = ($496 / $4250) / (21 / 12) * 100Let's perform the calculation for the APR. APR = ($496 / $4250) / (21 / 12) * 100 = (0.11670588235294118) / (1.75) * 100 = 6.671764705882353 * 100 = 667.1764705882353

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