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Complete Question for Algebra Question20

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.

(a) amount to be paid

(b) amount of interest

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

(d) APR (rounded to nearest 10th percent.)

Dec 15th, 2014

Amount repaid = 145.62*36 = $ 5242.32

Amount of interest = $ 5242.32 - 4500 = $ 742.32

Interest rate:
A = Pe^(rt)
5242.32 = 4500e^3r
1.16496 = e^3r
ln1.16496 = 3r
0.1527 = 3r
0.1527/3 = r
r = 0.0509= 5.09%

APR = 5.09*12 = 61.08 0r 60%

Please ignore my previous answer.
Please best my answer if helpful. Thanks :)

Dec 15th, 2014

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