College Math

Solution: In this case, we must use the formula for APR, that is = (1+ ) Here, C = 8500, A = 10,000 and n = 3 years and 7 months. We must convert the time period in years, thus, n becomes 3 + 7/12 = 3.5833. Substituting the values in the formula we get: 8500 = 10000 (1 + ) 3.5833 (1 + ) 3.5833 = 10000 8500 (1 + ) = (1.1764) −3.5833 APR = 0.04638 = 4.64%

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