Question: HOW DO YOU SOLVE FOR i MANUALLY? SHOW ALL YOUR STEPS Question-3 You are going to buy a new car worth $14,500. The dealer computes

HOW DO YOU SOLVE FOR i MANUALLY? SHOW ALL YOUR STEPS

Question-3 You are going to buy a new car worth $14,500. The dealer computes your monthly payment to be $267 for 72 months' financing. What is the dealer's rate of return on this loan transaction? Answer: Between 9.23% and 11.23% Solution: $14,000 $267(PJA, i%, 72) 1-0.8 148% per month r-(0.8148%)(12)-9.7776% i,-(1 + 0.008148)12-1-10.2396 Question-3 You are going to buy a new car worth $14,500. The dealer computes your monthly payment to be $267 for 72 months' financing. What is the dealer's rate of return on this loan transaction? Answer: Between 9.23% and 11.23% Solution: $14,000 $267(PJA, i%, 72) 1-0.8 148% per month r-(0.8148%)(12)-9.7776% i,-(1 + 0.008148)12-1-10.2396

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