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18 February, 17:17

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?

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  1. 18 February, 19:17
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    14,999 (1+. o825) ^4 = 20,595. $429x48 months = 20,592

    Interest rate 8 1/4%

    Check 20592/14999 = 1.37289

    Log (1.37289) / log (1.0825) = 3.99 years
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