You don't even need the formula. Paying the amount over 72 months with no financing means dividing the amount by the number of months for your payment.

17475/72 = your answer

Don't forget to round the cents.

Jerry N.

asked • 12/17/20The ad for a 4-door sedan claims that a monthly payment of $299 constitutes 0% financing. Explain why that is false. Find the annual interest rate compounded monthly that is actually being charged for financing $17,475 with 72 monthly payments of $299.

NEW 4-DOOR SEDAN!

Zero down - 0% financing

$299 per month*

Buy for $17,475.

*4-door sedan, 0% down, 0% for 72 months

The advertisement is false, because for 0% financing, the monthly payments should be $ _____________, not $299.

(Round to the nearest cent as needed.)

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You don't even need the formula. Paying the amount over 72 months with no financing means dividing the amount by the number of months for your payment.

17475/72 = your answer

Don't forget to round the cents.

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