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2. Audrey is buying a new car for $32,998.00. She plans to make a down payment of $4,200.00. If she's to make monthly payments of $525 for the next five years, what APR has she paid? A. 3% B. 3.7% C. .37% D. 37%
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Audrey is buying a new car for $32,998.00. She plans to make a down payment of $4,200.00. If she's to make monthly payments of $525 for the next five years, she has paid 3.7% APR. Solution: (r = 3.7% = 0.037) 2057r / 450 = 2057(0.037) / 450 = 76.109 / 450 = 0.1691 1 - (1 + r/12)^60 = 1 - (1 + 0.037/12)^-60 = 1 - 0.8313 = 0.1687; Therefore, r is approximately 3.7%.
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Asked 10/9/2018 10:37:50 AM
Updated 10 days ago|6/11/2021 1:17:58 PM
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Audrey is buying a new car for $32,998.00. She plans to make a down payment of $4,200.00. If she's to make monthly payments of $525 for the next five years, she has paid 3.7% APR. Solution: (r = 3.7% = 0.037) 2057r / 450 = 2057(0.037) / 450 = 76.109 / 450 = 0.1691 1 - (1 + r/12)^60 = 1 - (1 + 0.037/12)^-60 = 1 - 0.8313 = 0.1687; Therefore, r is approximately 3.7%.
Added 10 days ago|6/11/2021 1:17:58 PM
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