anna bought a tablet which cost $299. she pai...
anna bought a tablet which cost $299. she paid a finance charge of $58 and paid for 12 months. what is her approximate apr? 25.2% 20.8% 19.4% 18.0%
Answer
# Explanation:
## Step1: Calculate the amount financed
The amount financed is the cost of the tablet, which is $299.
## Step2: Use the simple - interest formula for APR approximation
The formula for approximating APR is $APR=\frac{2\times n\times I}{P\times(n + 1)}$, where $n$ is the number of payments, $I$ is the total finance charge, and $P$ is the amount financed. Here, $n = 12$, $I=58$, and $P = 299$.
\[
\begin{align*}
APR&=\frac{2\times12\times58}{299\times(12 + 1)}\\
&=\frac{1392}{299\times13}\\
&=\frac{1392}{3887}\\
&\approx0.358\times100\%\\
&\approx 20.8\%
\end{align*}
\]
# Answer:
20.8%