Answer:
r=8.2%
Step-by-step explanation:
A car that retails for $14,999 has a sticker on the windshield that says, "$429/mo for 48 months." What interest rate is this car financed at?
from compound interest formula
A=P(1+r%)^n
The parameters are
A=amount, 429*48=20592
n=48 months, 4 years
r%=?
P=14999
20592=14999(1+r%)^4....dividing both sides by 14999
1.372=(1+r%)^4
find the fourth root of both sides
1+r%=1.082
r%=0.082
r=8.2%
the interest fate on the car will be the above.
