Question

Ryan took out a 66 month loan to pay for a 28500 car.if he paid 33829.50,in total at the end of the loan,find the interest rate

Answer 1

9514 1404 393

Answer:

  3.4%

Step-by-step explanation:

The total amount due is ...

  A = P(1 +rt/12) . . . . . principal P, annual rate r, t months

  33829.50 = 28500(1 +66/12r)

  1.187 = 1 +5.5r . . . . . divide by 28500, simplify

  0.185/5.5 = r = 0.034 = 3.4%

The interest rate on the loan is 3.4%.