Question

In the past, a car manufacturer advertised 0%financiang on many of its models. For example, a particular model had acash price of $10857.29. However, if you elected to buy the car under the 0%financing deal, then the manufacturer used a price of $12528. If you chose a 48-month term, then the manufacturer calculated your monthly loan payments using the 0% financing price instead of the cash price ($261 per month). In the fine print, the manufacturer was legally obliged to disclose the effective annual rate that it charged for the loan.What rate did the manufacturer disclose? Using financial calculator.

Answer 1

Manufacturer should discussed 7.2% as the interest rates.

Data: Pago to Cash Price of Model 10857.29 $ Porice of model @ 0-2 financing 3 124 12528$ For 48 Month 261 $ per month loan payment amt 12,528 h8 month pes 261$ Actueel price cash price = 10,851.29 $ I Difference of or financing the effective value and interest cash price amount will be amount that is : 42,528 - 10,857.29 s 16 toty

Date : Page No.: By putting those values in you will get answer financial calculator ter 4.24. will be answer for