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Jerry N.

asked • 10/26/20

The ad for a​ 4-door sedan claims that a monthly payment of ​$349 constitutes​ 0% financing. Explain why that is false.

The ad for a​ 4-door sedan claims that a monthly payment of ​$349 constitutes​ 0% financing. Explain why that is false. Find the annual interest rate compounded monthly that is actually being charged for financing ​$17,495 with 60 monthly payments of ​$349.


NEW​ 4-DOOR SEDAN!

Zero down​ - 0% financing

​$349 per​ month*

Buy for ​$17,495.

​*4-door sedan,​ 0% down,​ 0% for 60 months


The advertisement is​ false, because for​ 0% financing, the monthly payments should be ​$______​, not ​$349.

​(Round to the nearest cent as​ needed.)

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