Question

Summer has an offer to buy an item with a sticker price of $13,200 by paying $460 a month for 36 months. What interest rate is Summer being offered?

Answer 1

Answer:

the annual interest rate is 7.583%

Step-by-step explanation:

We are given

Summer has an offer to buy an item with a sticker price of $13,200

so, we have

P=13200

paying $460 a month for 36 months

so, we can find total amount

$A=460\times 36$

$A=16560$

Let's assume

annual interest is r

total time =36 months

so, total number of years =3

Since, it is compounded monthly

so, n=12

now, we can use formula

$A=P(1+\frac{r}{n} )^{nt}$

now, we can plug values

$16560=13200(1+\frac{r}{12} )^{36}$

now, we can solve solve for r

$(1+\frac{r}{12} )^{36}=\frac{16560}{13200}$

$r=0.07583$

So, the annual interest rate is 7.583%

Answer 2

Answer:

7.6

Step-by-step explanation:

Apex