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Section 8

Motor Vehicle Financing

8.3 Annual Percentage Rate

  1. The interest rate charged must be an annual rate of interest, not something compounded monthly or quarterly, nor in any other way manipulated to result in a higher than annual percentage rate of interest.

Computing Monthly Payments

  1. The APR and unpaid balance due must be combined and then divided by the remaining months left on the conditional sales contract to produce a base monthly payment.

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