A car dealer sells a new car for $18,000. He also offers to sell the same car

Question:

A car dealer sells a new car for $18,000. He also offers to sell the same car for payments of $375 per month for five years. What monthly interest rate is this dealer charging?
To solve this problem you will need to use the formula for the present value A of an annuity consisting of n equal payments of size R with interest rate i per time period:

Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,... Dealer
A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...

Fantastic news! We've Found the answer you've been seeking!