The APR for loans can also be approximated $($however$,$ not within the

$1$

$4$

of $1\%$ accuracy required by Regulation Z$)$ by using the following formula:The APR for loans can also be approximated $($however$,$ not within the $\frac{1}{4}$ of $1\%$ accuracy required by Regulation $Z+)$ by using the following formula:

APR$=\frac{2mI}{P(n+1)}$

where

$m=$ the number of payment periods per year

$I=$ the interest $($or finance charge$)$

$P=$ the principal $($amount financed$)$

$n=$ the number of periodic payments to be made.

Thus, if $m=12,I=$$$264,P=$$$1200$ and $n=30,$

APR$=\frac{2mI}{P(n+1)}=\frac{212264}{120031}=17\%$

Use the APR formula to find the APR to one decimal place. $($Assume $m=12.)$

State the difference between the answer obtained by the formula and the answer obtained using the True Annual Interest Rate $($APR$)$ table. $($Round your answer to one decimal place.$)$