A car that retails for $14,999 has a sticker on the windshield that says, "$429/mo for 48 months." What interest rate is this ca

Question

2 years ago

9

r financed at?

2 answers:

kkurt [141] · Answer 1 · 2023-11-09T14:16:32+03:00

4 0

14,999(1+.o825)^4= 20,595. $429x48 months= 20,592
Interest rate 8 1/4%

Check 20592/14999= 1.37289
Log(1.37289)/ log(1.0825)= 3.99 years

Vlad1618 [11] · Answer 2 · 2023-11-09T15:28:09+03:00

Answer:

r=8.2%

Step-by-step explanation:

A car that retails for $14,999 has a sticker on the windshield that says, "$429/mo for 48 months." What interest rate is this car financed at?

from compound interest formula

A=P(1+r%)^n

The parameters are

A=amount, 429*48=20592

n=48 months, 4 years

r%=?

P=14999

20592=14999(1+r%)^4....dividing both sides by 14999

1.372=(1+r%)^4

find the fourth root of both sides

1+r%=1.082

r%=0.082

r=8.2%

the interest fate on the car will be the above.