Posted by **apryl** on Tuesday, August 23, 2011 at 3:43pm.

A car dealer will sell you a used car for $7,742 with $742 down and payments of $309.93 per month for 24 months. What is the APR?

- math -
**Reiny**, Tuesday, August 23, 2011 at 4:24pm
So your present value of the loan = $7000

n = 24

i = ??

P = 309.93

7000 = 309.93(1 - (1+i)^-24)/i

solving this for i is very messy, and we have no algebraic formulas that will do that.

I set up an Excel program where I found

a montyly rate of .004915 to come withing a few pennies of $7000

so the APR = 12(.004915) = .05898 or 5.898%

check: 309.93(1 - 1.004915^-24)/.004915 = 7000.17

## Answer this Question

## Related Questions

- Math - A car dealer will sell you the $16,650 car of your dreams for $3,290 down...
- Algebra - A car dealer will sell you a used car for $6,980 with $980 down and ...
- ALGEBRA - A car dealer will sell you a used car for $7,542 with $542 down and ...
- ALGEBRA - A car dealer will sell you a used car for $8,672 with $672 down and ...
- Algbra - A car dealer will sell you the $16,650 car of your dreams for $3,290 ...
- Math - A car dealer will sell you a used car for $6,664 with $664 down and ...
- Algebra - A car dealer will sell you a used car for $5709 with $709 down and ...
- math - A car dealer will sell you a used car for $8,544 with $544 down and ...
- MATH - A car dealer will sell you a used car for $5,238 with $238 down and ...
- Algebra - A car dealer will sell you a used car for 5,107 with 107 down and ...