Hi! I’m new here. This is my problem and I do not know how to get the solution:
Suppose you want to buy a $20 000 automobile and pay it off in 60 monthly payments of 375$ per payment. What is the annual interest rate that will allow you to pay the debt off in exactly 60 payments? Solve using a graphing calculator. Answer: 4.735%
Note: I tried isolating i, however I found out it was not possible. I also tried the PVOA table, but I did not get the correct answer. There is this technique where you guess the rate, and it works but it’s not accurate. Lastly, when it says use “graphing calculator”, does this mean the rate is showed in a graph, and I have to determine it, or will I simply input the values?(Sorry for the long post, and thank you for taking the time to read this)
Suppose you want to buy a $20 000 automobile and pay it off in 60 monthly payments of 375$ per payment. What is the annual interest rate that will allow you to pay the debt off in exactly 60 payments? Solve using a graphing calculator. Answer: 4.735%
Note: I tried isolating i, however I found out it was not possible. I also tried the PVOA table, but I did not get the correct answer. There is this technique where you guess the rate, and it works but it’s not accurate. Lastly, when it says use “graphing calculator”, does this mean the rate is showed in a graph, and I have to determine it, or will I simply input the values?(Sorry for the long post, and thank you for taking the time to read this)
