Lucy can buy a cross country ski outfit fro 275 The store is

Lucy can buy a cross country ski outfit fro $275. The store is offering the following financing terms: $50 down and 12 monthly payments of $19.62.

A. Determine the interest that she would pay.

B. Determine the APR.

PV = 275 - 50

PMT = -19.62

FV = 0

N = 12

use rate function in Excel

monthly rate of interest = 0.7048%

B. APR = 0.7048*12% = 8.46%

Lucy can buy a cross country ski outfit fro $275. The store is offering the following financing terms: $50 down and 12 monthly payments of $19.62. A. Determine

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