Answer:
9.68%
Step-by-step explanation:
cost of car = $35,000
down payment = $3,000
number of monthly instalments= $65
amount in every monthly instalment= $539.99
total monthly payment= 65×539.99= 35099.35
amount to be paid apart from downpayment= $35,000-3000= 32,000
therefore total interest paid in 65 months= 35099.35-3200= $3099.35
now, monthly interest rate [tex]r= \frac{3099.35}{32,000}\times100[/tex]
⇒ r= 9.68%
Answer:
0.285%
Step-by-step explanation:
Given,
The original value of the car = $ 35,000,
Amount of down payment = $ 3000,
So, the principal amount of the loan, P.V. = 35,000 - 3,000 = $ 32,000
Now, the amount of each monthly payment P= $ 539.99,
Number of monthly payments, n = 65,
Since, the monthly payment formula is,
[tex]P=\frac{PV(r)}{1-(1+r)^{-n}}[/tex]
Where, r is the monthly interest rate,
[tex]539.99 =\frac{32000(r)}{1-(1+r)^{-65}}[/tex]
By graphing calculator,
[tex]r=0.00285 = 0.285\%[/tex]
Thus, he is being charged 0.285 % interest per month.
