Description
For the car loan described
A newspaper advertisement offers a $4,500 used care for nothing down and 36 easy monthly payments of $145.62.
a. amount to be paid
b. amount of interest
c. interest rate (round to 2 decimal places.)
d. APR (nearest 10th percent
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Explanation & Answer
a. amount to be paid=36x145.62=5242.32 dollars
b. amount of interest=5242.32-4500=742.32 dollars
c. the monthly interest rate=742.32/4500/36x100%=0.46%
d. APR=0.46%x12=5.5%
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