Big Sean is buying a new truck from Willie’s Auto Sales, the dealer is providing the...

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Big Sean is buying a new truck from Willie’s Auto Sales, the dealer is providing the...

Big Sean is buying a new truck from Willie’s Auto Sales, the dealer is providing the financing and he uses the discount method. If borrows $40,000 at 9% for 48 months, what is the APR on Big Sean’s loan?

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Answer 1

Answer #1

Solution Here, APR = 90% PMTE PMT (Rate, neos, pv, fu = PM7 [9% 48, 40000, 0] · 995.40 12 -1 EAR = (1+ 9%). 9.38%

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