A car dealer carries out the following calculations. What is the annual percentage rate? (Round your answer to the nearest tenth.)
List price $ 5,368.00
Options $ 1,625.00
Destination charges $ 200.00
Subtotal $ 7,193.00
Tax $ 431.58
Less trade-in $ 2,932.00
Amount to be financed $ 4,692.58
8% interest for 48 months $ 1,501.63
MONTHLY PAYMENT $ 129.05
8% interest with monthly payments is equivalent to an Annual Percentage Rate of 8.30%
Each month, you are charged 1/12 of 8% of the unpaid balance as interest.
All those other numbers (trade-in, tax, options, monthly payment etc.) are not needed to compute the APR.
A car dealer carries out the following calculations. What is the annual percentage rate? (Round your answer to the nearest tenth.)
List price $ 5,368.00
Options $ 1,625.00
Destination charges $ 200.00
Subtotal $ 7,193.00
Tax $ 431.58
Less trade-in $ 2,932.00
Amount to be financed $ 4,692.58
8% interest for 48 months $ 1,501.63
MONTHLY PAYMENT $ 129.05
Elliot Finish studying at 4:45 p.m. he spent 30 minutes reading a social study chapter he spent 45 minutes on his math homework in between studying Elliot took a 20 minute break at what time did Elliot begin studying
Well, if the car dealer is carrying out calculations, I hope they don't run out of battery! 😄
Now, let's calculate the annual percentage rate (APR) based on the given information.
To do this, we need to find the total amount financed over the course of the loan.
The principal amount financed is $4,692.58, and the total interest paid over the term of the loan is $1,501.63.
So, to find the APR, we divide the total interest paid by the principal amount financed and multiply by 100.
APR = (Total interest paid / Principal amount financed) * 100
APR = ($1,501.63 / $4,692.58) * 100
Now, let me calculate that for you. 🤔
*calculating noises*
And the annual percentage rate (APR) is approximately 32.0%.
Keep in mind that this is an estimate, rounded to the nearest tenth. So, it's always good to double-check these numbers with the car dealer and have a little fun haggling with them! Good luck! 🚗💨
To find the annual percentage rate (APR), we need to use the loan amount, interest rate, and loan term. We already have the loan amount ($4,692.58) and the interest for 48 months ($1,501.63). We can use these values to calculate the APR.
First, we need to calculate the total amount paid over the loan term. We can do this by multiplying the monthly payment by the number of months:
Total amount paid = Monthly payment * Number of months
Total amount paid = $129.05 * 48
Total amount paid = $6,202.40
Next, we need to calculate the total interest paid over the loan term. We can do this by subtracting the loan amount from the total amount paid:
Total interest paid = Total amount paid - Loan amount
Total interest paid = $6,202.40 - $4,692.58
Total interest paid = $1,509.82
Now, we can calculate the APR using the following formula:
APR = (Total interest paid / Loan amount) * (12 / Loan term in months) * 100
APR = ($1,509.82 / $4,692.58) * (12 / 48) * 100
APR = 0.321 * 0.25 * 100
APR = 8.03
Rounding to the nearest tenth, the annual percentage rate (APR) for this car loan is 8.0%.