A Chrysler advertisement offered "$1250 cash back or 1.9% factory financing over 48 months" to purchasers of new models Dodge and Plymouth vans. A customer financed $20,000 at the low interest rate instead of paying $18,750 cash (after the $1250 rebate). What was the effective rate of interest on the loan if the foregone cash rebate was treated as part of the cost of financing? (The 1.9% interest rate was a monthly compounded nominal annual rate.)

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The Answer of A Chrysler advertisement offered "$1250 cash back or 1.9% factory financing over 48 months" to purchasers of new models Dodge and Plymouth vans. A customer financed $20,000 at the low interest rate instead of paying $18,750 cash (after the $1250 rebate). What was the effective rate of interest on the loan if the foregone cash rebate was treated as part of the cost of financing? (The 1.9% interest rate was a monthly compounded nominal annual rate.)

A Chrysler Advertisement Offered "$1250 Cash Back or 1