SOLUTION: A car dealer will sell you a used car for $7,771 with $771 down and payments of $237.03 per month for 36 months. What is the simple interest rate? (round each answer to the neares
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Question 569359: A car dealer will sell you a used car for $7,771 with $771 down and payments of $237.03 per month for 36 months. What is the simple interest rate? (round each answer to the nearest). the correct answer is 7.3% My answer was 4.1%
I did the following:
$7,7771 - $771 =7000
I=/$237.03(36) = 8533.08
7000(r)(3)= 21,000
8533.08/21000= 0.406
I want to see how they arrived at 7.3% thanks.
Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!
is the total of payments on an indebtedness of 7000, so the total interest paid was $1,533.08. The total interest was paid over a period of 3 years, so the amount of interest paid per year is $511.03. Simple interest rate is the interest paid per year divided by the total indebtedness.
John
My calculator said it, I believe it, that settles it
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