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A car dealer will sell you the $16,850 car of your dreams for $3,290 down and payments of $333.97 per month for 48 months. What is the APR? (Round your answer to the nearest tenth of a percent.)

Respuesta :

The APR of the given transaction to the nearest tent of a percent is; 4.8%

What is the APR?

We find how much you will pay for the car using the down and monthly payments:

3290 + 333.97(48) = $19608.56

Thus, the interest is:

I = (19608.56 - 16450) = $3158.56

Use the simple interest formula:

I = Prt

where;

I is the interest.

P is the principal.

r is the interest rate is the time in years.

Substitute I = $3158.56, P = $16450, and t = 4 years (48 months):

Thus;

3158.56 = (16450)r(4)

Expanding gives;

​3158.56 = 65800r

r = 3158.56/65800

r ≈ 0.048 = 4.8%

Read more about APR at; https://brainly.com/question/24703884

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