Fundamentals of Engineering Economics 3rd Edition by Chan Park

تمرين 4

Assume that you are going to buy a new car for $25,000. You will be able to make a down payment of $3,000. The remaining $22,000 will be financed by the dealer. The dealer computes your monthly payment to be $547.47 for 48 months of financing. What is the dealer's annual rate of return on this car loan?