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)

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%

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