Elliott purchased a used pick-up truck for $9,500 he put $500. as a down payment and will repay the balance in monthly payments of $365. over the next 3 years. what is the apr of this loan?

The question will be solved using the present value of annuity formula.

Now, since he made a down payment of $500, The amount left to be paid is given $9,500 - $500 = $9,000.

The present value of annuity is given by:



where: PV = $9,000; P = $365; t = 12 payments per year, n = 3 years; r = APR and



is the Present value of annuity factor for periods at interest rate per period.

Here, there are 3 years x 12 monthly payments = 36 periods.

Thus,



This means that the present value of annuity factor is 24.657534.

Using the present value of annuity table, the present value of annuity facot for 36 periods at 2% interest rate per period is 25.488842 and at 3% is 21.832253.

Let the interest rate that give the present value of annuity factor of 24.657534 be x, then interpolating, we have:

Let , then we have:



Thus, the interest rate per period (r/12) = 2.227345%.

Therefore, the APR = 12 x 2.227345 = 26.7281 ≈ 26.7%

Hello!

the answer is:

the lateral area is equal to

why?

to find the lateral area of the square pyramid, first we need to find the perimeter of the base, and then, find the lateral area using the following formulas:

where,

s, is the base length

slant height, is the height of a the side of the pyramid

we are given:

now, calculating the perimeter of the base, we have:

then, calculating the lateral area:

hence, we have that the lateral area is equal to

have a nice day!