The APR for a typical loan of $5,000 is 116.73%. with 84 monthly payments of $48
ID: 2615245 • Letter: T
Question
The APR for a typical loan of $5,000 is 116.73%. with 84 monthly payments of $486.58.
Using the appropriate function in Excel, calculate the 116.73% listed above. (you need to demonstrate by using the Excel formula how they arrived at 116.73%. Show your computations in Excel.
WESTERNSKY FINANCIAL Giet up to $5000 I- Must have a checking account The APR for a typical loan of S5,000 is 116.73% with 4 n onthly payment guaranteed and is dependent upon underwriting guidlines. Sce our website or Cr dit approval is not complete disclosures. SAB Some documentation nequired 866-SKY-1224 WesternSky.com Western Sky Financial, LLC, is a 100% Native American-owned business operating on a Native American Reservation.Explanation / Answer
To get this result in Excel, we have first entered number of periods, then monthly payment, then amount of loan and finally desired balance after payments are made.
To calculate APR, we used the function rate in excel as follows:
=RATE(84,-486.58,5,000,0)*12
The result is 116.73%.
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