 Hello and welcome to the session. In this session we are going to discuss the following question and the question says that Jane purchased furniture with a cash prize of $11,450. She made a down payment of $350.50 and financed the balance amount with payment of $520.35 per month for 24 months. Find the APR of the loan. We follow the below steps to estimate APR using a per hundred dollar of amount financed table. The first step is to find the interest per hundred dollars of amount financed using the following formula. Interest per hundred dollars is equal to finance charge upon amount financed in $200. Next step is to find the row corresponding to the number of monthly payments. Move across the row to find the number closest to the value obtained in step one. Read up the column to find the annual percentage rate or the APR for that column. With this key idea let us proceed with the solution. In this question we are given that Jane purchased furniture with a cash prize of $11,450. She made a down payment of $350.50. She financed the balance amount with payment of $520.35. Per month for 24 months we have to find the APR of the loan. So here we have cash prize of the furniture is equal to $11,450. The down payment is equal to $350.50. The number of monthly payments is equal to $24. The monthly installment payment is equal to $520.35. So now using the steps given in the key idea we find the APR. So the step one was to calculate interest per hundred dollars which is given by the formula. Interest per hundred dollars is equal to finance charge upon amount financed in $200. Now as we know amount financed is equal to cash prize minus down payment. So here the cash prize is $11,450 and the down payment is $350.50. So let us now put the values in the formula and we get amount financed is equal to $11,450 minus $350.50 which is equal to $11,099.50. So now we need to find the finance charge to put the values in the formula for interest per hundred dollars. So now as we know finance charge is equal to installment prize minus cash prize. Now the installment prize is equal to total of installment payments plus down payment. So now to calculate the installment prize we first need to find the total of installment payments. So here the total of installment payments is equal to $24 into $520.35 which is equal to $12,488.40. Now the down payment is equal to $350.50 so the installment prize is equal to $12,488.40 plus $350.50. Which is equal to $12,838.90. So finance charge is equal to installment prize that is $12,838.90 minus the cash prize that is $11,450. Which is equal to $1,388.90. Now we put the values of finance charge and amount financed in the formula. Interest per hundred dollars is equal to finance charge that is $1,388.90 Upon amount financed that is $11,999.50 into $200 is equal to $12.51. So now in the next step we need to find the row corresponding to the number of monthly payments. So here we have the number of monthly payments is equal to $24. So now in the table we locate $24 in the number of monthly payments column here is $24. The value obtained in the previous step was $12.51. So we move across this row and locate values closest to $12.51. We see $12.51 lies between $12.42 and $12.70. So here we have two values closer to $12.51 which is $12.42 and $12.70. Now $12.51 minus $12.42 is equal to $0.09 and $12.70 minus $12.51 is equal to $0.19. This means that $12.42 is closer to $12.51. So we move up the column containing $12.42 and we see that the corresponding APR rate here is $11.50%. So the APR on Jane's loan is $11.50%. This is the required answer. This completes our session. Hope you enjoyed this session.