Question

  David is buying a new car for $21,349.00. He plans to make a down payment of $3,000.00. If he's to make monthly payments of $352 for the next five years, what APR has he paid?
    
  A. 5.9%
  B. 59%
  C. 5%
  D. .05%

Answer 1

Answer:

(A)

Step-by-step explanation:

Cost of car = $21,349

Down payment = $3000

Remaining amount left = $18,349

Monthly payments (A) = $352

n = Total periods = 5years = 5*12= 60

P(loan amount) = 18,349

r = rate of interest monthly = r/12

Using formula, A = $\frac{P\frac{r}{12} }{1-(1+\frac{r}{12})^{-60} }$

352 = [tex]\frac{18349\frac{r}{12} }{1-(1+\frac{r}{12})^{-60} }[/tex

    =   0.059(approx)

Annual percentage rate = 5.9%

Answer 2

You correct answer is going to be A..... 5.9%
Hope it helps Good Luck