Problem:
Suppose that you purchase a new MacBook for school. Apple will charge you $1,149 for the laptop and give you a $100 gift card that you will apply to your purchase. You will pay $1049 for the laptop. You decide to finance using a new Apple credit card. Assume Apple will offer you the card with 24% annual percentage rate(APR) and you decided to pay off the purchase with equal monthly payments over the next 2 years, starting one month of the date of purchase.
Required:
Question 1: What is the monthly payment associated with your new laptop? (nearest dollar rounded). Show calculation. Convert APR into monthly percentage rate.
Question 2: Suppose your uncle offers to buy the laptop for you(he will pay $1,199 since he is not a student) and let you pay him back with payments of $56.44 at the end of each month for the next 24 months. What ANNUAL interest rate is implicit in your uncle's offer?
Note: Please show the work not just the answer.