Assume the car can be purchased for 0% down for 60 months (in lieu of rebate).
A car with a sticker price of $42,650 with factory and dealer rebates of $5,100
Find the monthly payment if financed for 60 months at 0% APR.
Find the monthly payment if financed at 2.5% add-on interest for 60 months.
Use the APR approximation formula to find the APR for part (b).