The APR for loans can also be approximated (however, not within the of 1% accuracy required by Regulation Zt) by using the following formula: APR = 2ml 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 =. 2ml 2 X 12 x 264 P(n + 1) = 17%. 1200 x 31 Use the APR formula to find the APR to one decimal place. (Assume m = 12.) Amount Finance Number of Financed Charge Payments $4000 $354 12 3 * % 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.) 9.3 X % Additional Materials