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Math Help - Effective interest rate ?

  1. #1
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    Effective 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?
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  2. #2
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    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.
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  3. #3
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    the effective rate is 2.01847631%

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