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Help with Algebra Question20 Again

Algebra
Tutor: None Selected Time limit: 0 Hours

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)

Dec 16th, 2014

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%

Dec 15th, 2014

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