A car dealer will sell you a used car for $5,238 with $238 down and payments of $150.83 per month for 48 months. What is the simple interest rate? (Round each answer to the nearest tenth
Po = 5,238 - 238 = $5,000. = Inital
principal.
Pt = 150.83/mo * 48mo = $7239.84. =
Principal after 48 Months.
Po + Po*r*t = Pt = 7239.84
5000 + 5000*r*4yrs = 7239.84
5000 + 20000r = 7239.84
20000r = 7239.84 - 5000 = 2,239.84
r = o.112 = 11.2%. = Annual % rate.