SOLUTION: A newspaper advertisement offers a $4,000 car for nothing down and 36 easy monthly payments of $132.46. What is the simple interest rate? Round your answer to the nearest percent.

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Question 951888: A newspaper advertisement offers a $4,000 car for nothing down and 36 easy monthly payments of $132.46. What is the simple interest rate? Round your answer to the nearest percent.
Answer by macston(5194) About Me  (Show Source):
You can put this solution on YOUR website!
Total payments=$132.46(36)=$4768.56
Total interest paid=$4768.56-$4000=$768.56
Interest per year=$768.56/3=$256.19
Rate=($256.19/$4000)(100%)=6.4% ANSWER The interest rate is 6.4%.