SOLUTION: A car dealer will sell a used car for $5,277 with $277 down and payments of $116.25 per month for 60 months. What is the simple insterest rate?

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Question 634408: A car dealer will sell a used car for $5,277 with $277 down and payments of $116.25 per month for 60 months. What is the simple insterest rate?
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
 

Hi,

 6975 = 5000(1 + r)^5

 log(6975/5000) = 5log(1 + r)

 log(6975/5000)/5 = log(1 + r)

 10^.0289 - 1 = r = 6.88 % interest