Anewlywed couple bought a washer and dryer for $800. they paid 10% down and then paid 12 monthly payments of $61.97. determine the apr of the loan to the nearest of a percent. 8.0% 5.5% 7.5% 6.0%

  6.0%

Step-by-step explanation:

There is no formula for finding interest rate from a sequence of payments. A spreadsheet or financial calculator can do the necessary iteration, or the solution can be found by graphical means.

My financial calculator says the APR is 6.00656%. Rounded to the nearest tenth, that is 6.0%.

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The attachment shows the result from an on-line "interest rate calculator". It says the interest rate is about 6.006%. The graphical solution gives a similar result.

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In these various calculations, a principal amount of $720 was used because the down payment on the appliances was 10% of $800, or $80. That left a loan amount of $800 -80 = $720.

arrange the equations with like terms in columns.

analyze the coefficients of x or y.

add the equations and solve for the remaining variable.

substitute the value into either equation and solve.

check the solution.

step-by-step explanation:

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