Question

Audrey is buying a new car for 32,998.00. She plans to make a down payment of 4,200.00. If she's to make monthly payments of $525 for the next five years, what APR has she paid

Answer 1

The price of the new car is 32 998.00 dollars
=> he made a down payment of 4,200.00 dollars
=> 32 998.00 - 4,200.00 = 28 798 dollars remaining
=> She pays 525 dollars for the next 5 years
=> 525 * 12 months = 6300 dollars * 5 years = 31 500 dollars
=> 31 500 dollars - 28 798 = 2702
=> 2702 / 5 years = 540.4 dollars is the APR.