Solve the Problem

Solve the problem. Use the approximate APR formula to estimate the APR, and round rates to the nearest tenth of a percent.
-Doris White decided to get new appliances for her kitchen at a cost of $5900. She puts $700 down and will pay $137.75 per month for 48 months. Find the total installment cost, the finance charge, and the approximate annual percentage rate.

A) Total: $7312.00
Finance Charge: $1412.00
APR: 13.3%
B) Total: $6912.00
Finance Charge: $1012.00
APR: 9.7%
C) Total: $6612.00
Finance Charge: $712.00
APR: 5.9%
D) Total: $7312.00
Finance Charge: $2112.00
APR: 19.9%

Correct Answer:

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