Ask a New Question

Question

A car dealer will sell you a $5445 car for $1058 down payment and payments of $132.24 per month for 48 months. What is the simple interest rate?

I've been trying to answer this question and am not getting the right answer as the textbook. Help please!
5 years ago

Answers

henry2,
Po = 5445 - 1058 = $4387.
P = 132.24 * 48 = $6347.52.
T = 48mo. = 4 yrs.

P = Po + Po*r*T = 6347.52.
4387 + 4387*r*4 = 6347.52,
4387 + 17,548r = 6347.52,
r = 0.112 = 11.2%.
5 years ago

Related Questions

A car dealer will sell you a used car for $7,742 with $742 down and payments of $309.93 per month fo... A car dealer will sell you a used car for $5,430 with $430 down and payments of $183.06 per month fo... A car dealer will sell you a used car for $5,478 with $478 down and payments of $112.08 per month fo... A car dealer will sell you a used car for $8,672 with $672 down and payments of $157.66 per month fo... A car dealer will sell you a used car for $6,664 with $664 down and payments of $174.50 per month fo... A car dealer will sell you the $16,450 car of your dreams for $3,260 down and payments of $339.97 pe... A car dealer will sell you a used car for $6,298 with $798 down and payments of $165.51 per month fo... A car dealer will sell you a $5445 car for $1058 down payment and payments of $132.24 per month for...
Ask a New Question
Archives Contact Us Privacy Policy Terms of Use