Determine interest rate that he is paying on this car loan

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Reference no: EM13815198

Sam bought a car for $40,000 at “0” percent for 60 months. The financing was done through the financial arm of the car company. If he had paid cash for the car he could have gotten the car for $34,000. Determine the interest rate that he is paying on this car loan.

A. 6.6%

B. 6.0%

C. 5.2%

D. 5.8%

Reference no: EM13815198

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