Question

David is buying a new car for $21,349.00. He plans to make a down payment of $3,000.00. If he's to make monthly payments of $352 for the next five years, what APR has he paid?

Answer 1

Amount financed:

21349 - 3000 = 18349

Total paid:

5 years = 60 months (12 x 5)
352 x 60
= 21,120

Total interest:
21,120 - 18,349
= 2,771