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

Algebra ->  Finance -> 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      Log On


   

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) About Me  (Show Source):
You can put this solution on YOUR website!
 

Hi,

In General A+=+P%281%2Br%2Fn%29%5E%28nt%29

A = Accumulated Amount  24*402

P= principal = 8000

r= annual rate = .

n= periods per year = 1

t= years =  2

+1.206+=+%281%2Br%29%5E2

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

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