Asked by MONICA

A car dealer will sell you a used car for $5,478 with $478 down and payments of $112.08 per month for 60 months. What is the simple interest rate? (Round each answer to the nearest tenth.)
Answered by MONICA
5,478-$478=$5,000
$112.08*60=$6,724.8
$6,724.8-$5,000=$1,724
$1,724/5=344.8
$344.8/$5,000=0.06896= 7.0% is this correct.
Answered by Henry
Yes, your procedure and answer is correct.
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