car financing for less

Question

2-Year term
up to $40,000
6% compounded annually with a $500 up-front payment

what part of the offered deal is the interest rate

2 year term

up to $40,000

6% compounded annually

$500 up-front payment

Answer 1

In the offered deal, the part that represents the interest rate is:

6% compounded annually

This indicates the rate at which interest will be calculated on the financing amount over the term of the loan. The other components of the deal represent the duration of the loan (2-year term), the maximum loan amount (up to $40,000), and the upfront payment ($500).