Tim worker buys a new sofa for $629.95. he pays 25% down and takes an installment loan to complete the purchase. he makes 12 payments which include his principal and a $60.00 finance charge. what is the amount financed and what is the apr on his loan?
amount financed = $
apr (to the nearest tenth) = %

Amount financed = $ 472.4625

APR = 12.7%

Step-by-step explanation:

Given,

The original price of the sofa = $629.95,

Down payment percentage = 25% ,

∴ Amount of down payment = 25% of 629.95

= $ 157.4875,

So, the amount financed = $629.95 - $ 157.4875 = $ 472.4625,

Now, finance charge = $ 60,

Thus, APR =

= 12.6994 %

≈ 12.7%