You owe $10,400 on a car loan. What is the APR on this loan?
You owe $10,400 on a car loan. You have 36 more months to pay off this loan.
Payments are $350 per month. What is the APR on this loan the APR on this loan is approximately 1.12%.
This APR seems unusually low for a car loan. It's possible that there might be additional fees or costs associated with the loan that are not considered in this calculation.
To calculate the APR (Annual Percentage Rate) on a loan, we can use the formula:
APR = ((Monthly Payment / Loan Amount) * 12 / Loan Term) * 100
In this case, the loan amount is $10,400, the monthly payment is $350, and the loan term is 36 months. Let's calculate the APR:
APR = (($350 / $10,400) * 12 / 36) * 100
APR = (0.03365384615 * 0.3333333333) * 100
APR = 0.01121794871 * 100
APR ≈ 1.12
Therefore, the APR on this loan is approximately 1.12%.
However, this APR seems unusually low for a car loan. It's possible that there might be additional fees or costs associated with the loan that are not considered in this calculation.
It's always a good idea to review the loan agreement and consult with the lender to ensure accurate calculation of the APR.
To know more about APR refer here:
What is the APR on the car loan of $10,400 with 36 more months to pay and $350 monthly payments? The APR on this car loan is approximately 1.12%.