What is the new balance

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Q1. Miguel purchased a hot tub costing $5,090 by taking out an installment loan. He made a down payment of $1,300 and financed the balance for 24 months. If the payments are $173.77 each month, use the APR formula to find the APR. Round to the nearest hundredth of a percent.

Q2. Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime rate plus 4%. The starting balance on October 1 was $9,100.

On October 4 they made a payment of $1,400. On October 13 the business borrowed $2,700, and on October 19 they borrowed $4,200. If the current prime rate is 6%, what is the new balance (in $)?

Reference no: EM132923722

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