Posted by Sarah on .
A car dealer will sell you the $16,650 car of your dreams for $3,290 down and payments of $331.97 per month for 48 months. What is the APR? (Round your answer to the nearest tenth of a percent.)
I keep getting the wrong answer.
I get 26.1
As I gave $3290 for down payment I owe 16650-3290=$13360
If I pay $331.97per month *48 months=$15934.56
So when I owed 13360 I payed 15934.56 so 2574.56 more .If I owed 100 then I would have paid 100*2574.56/13360 more ie 19.3%
Is that OK? Does it make sense to you?