downpayment = 629.95(.25) = $157.49
amount to be financed = 472.46
The rest of the question sounds like something from the last century.
A very silly way of doing the financing and it misleads the uninformed.
I will assume they will now take 472.46 , add on $60 to get $532.46
then divide that by 12 to get a monthly payment of
$532.46/12 or $44.37
so to find the rate of interest actually charged:
472.46 = 44.37 (1 - (1+i)^-12)/i
10.64773576 i = (1 - (1+i)^-20)
an extremely difficult equation to solve
I will use Wolfram to attempt it.
(had to change the i to x, or else it interpreted i as
I used : 10.6477= (1 - (1+x)^-20)/x
and got .06935 as you can see
so the monthly rate is .06935 and the annual rate is .06935(12) = .8322
( and they burned people at the stake in the middle ages for such practises)
check on my rate
if annual rate is 83.22% , then monthly rate = 6.935% or .06935
let the monthly payment be p
then 472.46 = p( 1 - 1.06935)^-20)/.06935
472.46 = p(10.6477..)
p = 44.37 , (not bad)
I suppose the intent is for the unscrupulous dealer to suggest that the interest is only $60 on $472.46 for 1 year
or 60/472.46 = .12699
or 12.7% interest and telling them it is a lot better than the 18%+ rate that a credit card will charge.
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