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%.
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!
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