SOLUTION: A car dealer will sell you a used car for $8,674 with $674 down and payments of $402.00 per month for 24 months. What is the simple interest rate? (Round each answer to the nearest

Question 619325: A car dealer will sell you a used car for $8,674 with $674 down and payments of $402.00 per month for 24 months. What is the simple interest rate? (Round each answer to the nearest tenth.)

Answer by ewatrrr(24785) (Show Source): You can put this solution on YOUR website!

 

Hi,

In General 

A = Accumulated Amount  24*402

P= principal = 8000

r= annual rate = .

n= periods per year = 1

t= years =  2



  log(1.206)/2 = log(1+r)

     10^.0407  - 1 = r = .098, Interest Rate is 9.8% 

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