Question

Audrey is buying a new car for $32,998 she plans to make a down payment of $4,200 she's to make monthly payments of $525 for the next five years what APR has she paid

Answer 1

To calculate the APR that Audrey has paid, we need to calculate the total amount she has paid over the five years and then find the interest rate.

Step-by-step explanation:

To calculate the APR that Audrey has paid, we need to calculate the total amount she has paid over the five years and then find the interest rate. Here are the steps:

1. Calculate the total amount paid over five years by multiplying the monthly payment by the number of months: $525 * 60 = $31,500.

2. Subtract the down payment from the total amount paid to find the loan amount: $31,500 - $4,200 = $27,300.

3. Use the loan amount and the formula to calculate the APR:

• $27,300 = Monthly Payment * ((1 - (1 + Monthly Interest Rate)^(-Total Months)) / Monthly Interest Rate)
• Plug in the values and solve for the Monthly Interest Rate:

Monthly Interest Rate = 0.0042978

4. Multiply the Monthly Interest Rate by 12 to get the Annual Percentage Rate (APR): 0.0042978 * 12 = 0.0515736 or 5.16%.

Answer 2

i believe it should be $31,500