Chapter 10 Practice Problems Assignment: Chapter 10 Practice Problems Assignment Score: 22.85% HEHE Save Submit Assignment for Grading Questions Problem 10-21 Algo (Some Useful Excel Functions for Modeling) Question 5 of 5 3. O Hint(s) Check My Work 4. 5. An auto dealership is advertising that a new car with a sticker price of $34,128 is on sale for $25,995 if payment is made in full, or it can be financed at 0% interest for 72 months with a monthly payment of $474. Note that 72 payments x $474 per payment = $34,128, which is the sticker price of the car. By allowing you to pay for the car in a series of payments (starting one month from now) rather than $25,995 now, the dealer is effectively loaning you $25,995. If you choose the 0% financing option, what is the effective interest rate that the auto dealership is earning on your loan? (Hint: Discount the payments back to current dollars, and use Goal Seek to find the discount rate that makes the net present value of the payments = $25,995.) Enter your answer as a percentage. If required, round your answer to one decimal digit. 9.4 % Hide Feedback Incorrect Hint(s) Check My Work 0-Icon Key