Help with Algebra Question20 Again

User Generated

fcnevfu

Mathematics

Description

A newspaper advertisement offers a $4,500 used car for nothing down and 36 easy monthly payments of $145.62.

1. (interest rate (Round answer to two decimal places.)

2. (APR (rounded to the nearest tenth percent)

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Amount repaid = 152.62(36) = $5494.32

Amount of interest = 5494.32 - 4500 = $994.32

Interest rate:
A = Pe^(rt)
5494.32 = 4500e^3r
1.221 = e^3r
ln1.221 = 3r
0.200 = 3r
0.200/3 = r
r = 0.0665 =0.07 rounded to 2 d.p

apr= 6.65%


Anonymous
I was stuck on this subject and a friend recommended Studypool. I'm so glad I checked it out!

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Related Tags