John Brown has a $50,000 loan. He has a 9% annual interest rate. He paid $2,000 in fees and $4,486.05 in total interest the first year. If the APR is the financ
Mathematics
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Question
John Brown has a $50,000 loan. He has a 9% annual interest rate. He paid $2,000 in fees and $4,486.05 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 rounded to the nearest percent for that year?
2 Answer

1. User Answers Aliwohaish12
(2,000+4,486.05)÷50,000)×100=13% 
2. User Answers Phoca
Answer:
≈ 13%
Stepbystep explanation:
Given :
John Brown has a $50,000 loan.
He has a annual interest rate= 9%
He paid $2,000 in fees and $4,486.05 in total interest the first year.
Solution :
We are given that
APR = finance charge (interest plus fees) for one year/ amount financed(A)
Finance charge (interest plus fees) for one year= ($4,486.05+ $2,000) = $6486.05
Amount financed = $50,000
putting these values in (A)
APR = $6486.05/$50,000
APR = 0.129
APR = 0.129*100 =12.9% ≈ 13%
THUS , APR is approx. 13%