A car dealer will sell you a $5445 car for $1058 down payment and payments of $132.24 per month for 48 months. What is the simple interest rate?
I've been trying to answer this question and am not getting the right answer as the textbook. Help please!
Po = 5445 - 1058 = $4387.
P = 132.24 * 48 = $6347.52.
T = 48mo. = 4 yrs.
P = Po + Po*r*T = 6347.52.
4387 + 4387*r*4 = 6347.52,
4387 + 17,548r = 6347.52,
r = 0.112 = 11.2%.