What effective annual interest rate would you be paying

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Reference no: EM131000901

A new car dealer advertises financing at 0% interest over 4 years with monthly payments or a $3000 rebate if you pay cash.

(a) The car you like costs $12,000. What effective annual interest rate would you be paying if you financed with the dealer?

(b) The car you like costs $18,000. What effective annual interest rate would you be paying if you financed with the dealer?

(c) The car you like costs $24,000. What effective annual interest rate would you be paying if you financed with the dealer?

Reference no: EM131000901

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