Asked by apryl
A car dealer will sell you a used car for $7,742 with $742 down and payments of $309.93 per month for 24 months. What is the APR?
Answers
Answered by
Reiny
So your present value of the loan = $7000
n = 24
i = ??
P = 309.93
7000 = 309.93(1 - (1+i)^-24)/i
solving this for i is very messy, and we have no algebraic formulas that will do that.
I set up an Excel program where I found
a montyly rate of .004915 to come withing a few pennies of $7000
so the APR = 12(.004915) = .05898 or 5.898%
check: 309.93(1 - 1.004915^-24)/.004915 = 7000.17
n = 24
i = ??
P = 309.93
7000 = 309.93(1 - (1+i)^-24)/i
solving this for i is very messy, and we have no algebraic formulas that will do that.
I set up an Excel program where I found
a montyly rate of .004915 to come withing a few pennies of $7000
so the APR = 12(.004915) = .05898 or 5.898%
check: 309.93(1 - 1.004915^-24)/.004915 = 7000.17
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.