You are considering buying a 50 000 car The dealer
You are considering buying a $ 50,000 car. The dealer has offered you a 13.6 percent loan with 30 equal monthly payments. On questioning him, you find that the interest charge of $ 17,000 (or 0.136 × $ 50,000 × 2.5 years) is added to the $ 50,000 for a total amount of $ 67,000. The payments are $ 2,233.33 a month ($ 67,000 ÷ 30). What is the approximate effective annual interest rate?

Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help