Jeremy is shown the graph below and asked to write an equivalent equation. Jeremy writes the equation y=1+1/2x why is Jeremy's e
1 answer:
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Answer:
Interest rate is 1.4% and APR is 16.8%.
Step-by-step explanation:
Given,
The original cost of the car = $ 6,498,
Down payment = $ 798,
So, the present value of loan, P.V. = original cost - down payment
= $ 6,498 - $ 798 = $ 5700,
Now, the monthly payment, P = $ 162.51,
Number of months, n = 48,
Let r be the monthly interest rate,
Since, monthly payment formula of a loan,
By graphing calculator,
Hence, interest rate = 1.4%,
And, APR = 12 × 1.4% = 16.8%.