1) A car dealer is offering a $1500 rebate or financing at 2% APR over 36 months. The price of the car is $17,000.A minimum down payment of 20% is required. What is the effective interest rate for the loan?

Printable View

- February 21st 2009, 09:28 AMsandeep641Effective interest rate ?
1) A car dealer is offering a $1500 rebate or financing at 2% APR over 36 months. The price of the car is $17,000.A minimum down payment of 20% is required. What is the effective interest rate for the loan?

- March 3rd 2009, 07:27 PMTKHunny
What loan? You have not specified sufficient information.

Are the payments to be monthly?

What IS the down payment? Defining a minimum is no good.

Are you taking the rebate or the low interest?

Is 36 months the term of the loan? Maybe the rate rest to 12% after 3 years.

Really -- Bad Question. - March 5th 2009, 07:46 PMasalvador13
the effective rate is 2.01847631%

(1+i)^n - 1 x 100%