3
David is buying a new car for $21,349.00. He plans to make a down payment of $3,000.00. [ If he's to make monthly payments of $352 for the next five years, the APR he has paid is 5.9%.
SOLUTION:
21349 - 3000 = 18349
Amount he paid in 5years = 12×5= 60
352 × 60 =21,120
Interest is given as: 21,120 18,349 =2,771
Therefore, APR = 2,771×2×12/18,349×61) = 0.059 × 100 = 5.9%
Added 12/2/2020 1:11:23 PM
This answer has been confirmed as correct and helpful.
