SOLUTION: A car worth $12000, is purchased at the beginning of 2013, with a deposit of $2000. The remainder is borrowed from the bank, with interest compounding annually, and paid off in mon

Question 923616: A car worth $12000, is purchased at the beginning of 2013, with a deposit of $2000. The remainder is borrowed from the bank, with interest compounding annually, and paid off in monthly instalments of $349.92, until the end of 2015.
What was the annual compound interest rate from the bank?
I got 1.71%.
Can anyone please help me work out the solution for this question?? :(
All your answers will be appreciated
thank you
Found 2 solutions by ewatrrr, josmiceli:
Answer by ewatrrr(24785) (Show Source): You can put this solution on YOUR website!
In General
A = Accumulated Amount
P= principal = 10,000
r= annual rate = .
n= periods per year = 1
t= years = 3

- 1 = r = .08 0r 8% interest

Answer by josmiceli(19441) (Show Source): You can put this solution on YOUR website!
The formula is:

for annually compounded interest loans
is the years to pay off the loan
= the interest rate
= the principle of the loan
= what you end up paying
-------------------------------
Take $2,000 off the principle, so the loan starts with

------------------
There are in the years from the beginning of
2013 to the end of2015
The amount paid to the bank in those years is:

-------------------

The compound interest rate is 8%
Check my math, calculator work, and maybe
get a 2nd opinion, too

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