A car dealer will sell you a used car for $5,430 with $430 down and payments of $183.06 per month for 36 months. What is the simple interest rate? (Round each answer to the nearest tenth.)

Question

PLEASE HELP!

Answer 1

$5,430 - 430 = 5,000

183.06 * 36 = 6590.16

6590.16 - 5,000 = 1590.16

1590.16/3 = 530.0533

530.0533 / 5000 = 0.1060106 = 10.6% interest rate

Answer 2

Thanks for your help, I'm not sure how but I kept getting 1.06%

Answer 3

You need to multiply 0.106 by 100 to get the percent.

You can also just move the decimal point two places to the right.