Jake wants to buy a new car that has a cash price of $20,000. He makes a down payment of $2,000, and will have payments of $360 that are paid once a month for 5 full years.

1. How much is the total finance charge the man will end up paying for this car? ($3,600 , $6,320 , or $1,600)

2. What is the approximate APR for this car? (7.9% , 5.0% , or 3.5%)

For APR I think the formula is [ APR = (2*n*f) / (P(N-1)) ] where n is the number of payment periods in one year and f is the finance charge.