The Fly By Night Used Car Lot uses the following to illustrate their 8.7% finance plan...

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The "Fly By Night" Used Car Lot uses the following to illustrate their 8.7% finance plan on a car paid over 4 years. Cost of the car: 8.7% finance charge: $13800 $4802.4 (that is, 8.7 %/year x $13800 x 4 years) Total cost: $18602.4 Monthly payment: $18602.4 48 = $387.55. The first payment must be made one month after purchase. What is the true interest rate compounded monthly being charged? Answer: The "Fly By Night" Used Car Lot uses the following to illustrate their 8.7% finance plan on a car paid over 4 years. Cost of the car: 8.7% finance charge: $13800 $4802.4 (that is, 8.7 %/year x $13800 x 4 years) Total cost: $18602.4 Monthly payment: $18602.4 48 = $387.55. The first payment must be made one month after purchase. What is the true interest rate compounded monthly being charged? Answer: