You are borrowing $4,000 to purchase a HD plasma TV using a 36 month installment plan. Determine the annual percentage rate (APR) using the APR formula given that the interest charge is $782.96. Round your answer to the nearest whole percent.

Use the installment-plan APR formula: APR = (2 × payments per year × interest charge) ÷ [amount borrowed × (total payments + 1)]. Substituting the values gives (2 × 12 × $782.96) ÷ [$4,000 × 37] ≈ 0.12696, or 12.696%. Rounded to the nearest whole percent, the APR is 13%, choice D.

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