Amount Financed: $8,900
Finance Charge: $1,030.62
Number of Payments: 24
(Finance Charge)/(Amount Financed)*100$=($1,030.62)/($8,900)*100$
(Finance Charge)/(Amount Financed)*100$=(0.1158)*100$
(Finance Charge)/(Amount Financed)*100$=$11.58
In the row of number of Payments 24, we look for:
(Finance Charge)/(Amount Financed)*100$=$11.58, and we to which annual porcentage rate it corresponds in the first row
Answer: The annual percentage rate is 10.75%
