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?
Answers
Damon
you borrowed 5445 - 1058 = 4387
You paid 48*132.24 = 6347.52
so the interest you paid is 1960.52 over 4 years
that is 490.13 interest per year on your 4387 loan
100 * 490.13 / 4387 = 11.2 %
You paid 48*132.24 = 6347.52
so the interest you paid is 1960.52 over 4 years
that is 490.13 interest per year on your 4387 loan
100 * 490.13 / 4387 = 11.2 %