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To calculate the **Approximate Annual Percentage Rate (APR)**, we can use the following formula, which is commonly used for installment loans:

\[
\text{APR} \approx \frac{2 \times \text{Finance Charge} \times 12}{\text{Amount Financed} \times (\text{Number of Payments} + 1)}
\]

Given the information in the table:
- Amount Financed = \$1852
- Finance Charge = \$111.11
- No. of Monthly Payments = 24

Now, let's plug these values into the formula:

\[
\text{APR} \approx \frac{2 \times 111.11 \times 12}{1852 \times (24 + 1)}
\]

\[
\text{APR} \approx \frac{2666.64}{1852 \times 25}
\]

\[
\text{APR} \approx \frac{2666.64}{46300}
\]

\[
\text{APR} \approx 0.0576 \quad \text{or} \quad 5.8\% \ (\text{rounded to the nearest tenth})
\]

So, the approximate APR is **5.8%**.

Would you like more details on this calculation or have any other questions?

Here are 5 related questions for practice:
1. How would the APR change if the number of payments was reduced to 18?
2. What happens to the APR if the finance charge increases to $200?
3. How does the amount financed impact the APR?
4. Can the APR be negative? Why or why not?
5. What is the relationship between the finance charge and APR?

**Tip:** The more payments you have, the lower your APR will be for the same amount financed and finance charge.

Find the approximate annual percentage rate (APR) given the amount financed, finance charge, and number of monthly payments using the approximate annual percentage rate formula.

Learn how to calculate the approximate APR for a loan where $1852 is financed, the finance charge is $111.11, and there are 24 monthly payments. This example illustrates a simple APR formula for installment loans, perfect for high school students studying consumer mathematics.

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