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29 October, 01:12

Mike Morgan has a $83,098.59 loan. He paid $1,000 in fees and $4,900 in total interest the first year. If the APR is the finance charge (interest plus fees) for one year : amount financed, what was the APR for that year?

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  1. 29 October, 01:52
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    Equation: Y = P% * X

    Solving our equation for P

    P% = Y/X

    P% = 4900/83098.59

    p = 0.059

    Convert decimal to percent:

    P% = 0.059 * 100 = 5.9%
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