Finance Charge/ APR homework question?

Posted on 2014-04-17 11:09:00 in Finance by L

I keep getting it wrong, I don't understand what I am doing wrong, so if someone could point it out for me.



Jennifer wants to buy a used car for $4600. Dealer offered a four year add-on interest loan that requires NO down payment at 8% annual interest with an APR of 14.25 %

A. find monthy payment

B. Verify APR



A. this is the equation i set up



4600(1 + .08/12)^48 = pmt ( (1+ .08/12)^48 - 1 / .08/12 )



I'm getting $112.30, but the answer is $126.50



What am I doing wrong?

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