1. B24: I can use a table to find the annual percentage rate of a loan.

2. What is the annual percentage rate (APR)?
Example 1
Installment loan of $5,000
Finance charge of $580
Monthly payments: 24
What is the annual percentage rate (APR)?

3. How do we find the APR?
Finance Charge = $100 x Finance Charge Per $100 Amount Financed First we will divide the finance charge by the amount financed: $580 ÷ $5000 = 0.116

4. Next we will multiply the result x $100
Then we will look on p in the textbook to find the closest value to $11.60 in the table. Remember the number of monthly payments is 24.

5. The closest value in the table is $11.58.
The APR that corresponds to this value is %

6. You try this one: Installment loan of $7,200 Finance charge of $1,008
Monthly Payments: 36
What is the APR?

7. Closest in the table is $14.06 APR is 8.75%
Did you get….
1008 ÷ = 0.14
0.14 x $100 = $14
Closest in the table is $14.06
APR is 8.75%

8. B24: I can use a table to find the annual percentage rate of a loan.