Cathy takes out a $167,000 mortgage. She plans monthly payments to pay it off in 40 years. At the end of the term, Cathy will have paid $401,294.40 total. Choose the appropriate APR formula.


APR=2nf/P(N+1)



APR=24(234,294.4)/167,000(481)


APR=2(12)(401,294.4) / 167,000(480+1)


APR=2(12)(167,000)(401,294.4)⋅481

APR=24(284,147.2)401,294.4(480+1)