Question

NEW 4-DOOR SEDAN! The ad for a 4-door sedan claims that a monthly payment of $349 constitutes 0% financing. Explain why that is false. Find the annual interest rate compounded monthly that is actually being charged for financing $17,465 with 60 monthly payments of $349. Zero down - 0% financing $349 per month* Buy for $17,465. *4-door sedan, 0% down, 0% for 60 months The advertisement is false, because for 0% financing, the monthly payments should be $ (Round to the nearest cent as needed.) ), not $349. %, compounded monthly. If a loan of $17,465 is amortized in 60 payments of $349, the annual interest rate is (Round to the nearest hundredth as needed.)

Answer 1

Answer- Ln Given Data the ad for a & door Sedan claims that a monthly payment of $349. Costeluts on financing. Actually being charged for financong = $19,465 time = Correithly monte Thortly payments = 8349. By cuing pot feneting Soluing i Ms-excel. PMT (Rate, per, P4, FV, Type) Here, Rate = on nper - 60 PV = 17,465 type = 0 PMT 02, 60,17465,0,0) = $$42.77 the advertisement ii false, because for on. financing the monthly payments should be $124217, not $349.

* f a loan of $171465 ý amortized To 60 payments of $399 ne solve the annual interest rate is 4 - P (145) A r = rate of interest 5 years = 60 monthy 604349 = 17,465 (it B (1+2) = (0.8360 H z 60000 12953 1.3953 5 2 0.395 Tre 4.74 4 rate of interext = [47