A car dealer offers payments of $522.59 per month for 48 months on a $25,000 car after making a $4,000 down payment.What is the loan's APR?

Name: A car dealer offers payments of $522.59 per month for 48 months on a $25,000 car after making a $4,000 down payment.What is the loan's APR?
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Quizplus · Accepted Answer

$25,000 − 4,000 = $522.59 {(1 / r) − [1 / r(1 + r)⁴⁸]}Using a financial calculator or Excel, r = 0.0075APR = 0.0075 × 12APR = 0.09, or 9%

A Car Dealer Offers Payments of $522