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Help in solving financial word problem - 2

Algebra
Tutor: None Selected Time limit: 0 Hours

For the car loan described, give the following information.

A newspaper advertisement offers a $4,000 used car for nothing down and 36 easy monthly payments of $145.62.

Nov 18th, 2014

Amount repaid = 145.62(36) = $5494.32 

Amount of interest = 5494.32 - 4000 = $1494.32 

Interest rate: 
A = Pe^(rt) 
5494.32 = 4000e^3r 
1.221 = e^3r 
ln1.221 = 3r 
0.200 = 3r 
0.200/3 = r 
r = 0.0665 = 6.65% 

Nov 18th, 2014

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Nov 18th, 2014
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Nov 18th, 2014
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